From 100000 yuan / ton to 380000 Yuan / ton, the price of glyphosate rose 280% in two years, which also boosted the performance of relevant listed companies.
On March 5, Lier Chemical Co.Ltd(002258) ( Lier Chemical Co.Ltd(002258) . SZ) released the annual report of 2021. During the reporting period, the company achieved an operating revenue of 6.494 billion yuan, a year-on-year increase of 30.70%; The profit attributable to the parent company was 1.072 billion yuan, a year-on-year increase of 75.17%.
The reason is mainly due to the “rise in the price of glufosinate”.
At the same time, Lier Chemical Co.Ltd(002258) announced that the company plans to distribute a cash dividend of 5 yuan (including tax) for every 10 shares to all shareholders and convert the capital reserve into 4 shares for every 10 shares.
It is worth noting that at least four funds under the South Fund increased their positions in the fourth quarter of last year Lier Chemical Co.Ltd(002258) .
glyphosate boom, driving performance growth
According to the data, the predecessor of Lier Chemical Co.Ltd(002258) is Sichuan Mianyang Lear chemical, which was established in February 1993. In July 2008, Lier Chemical Co.Ltd(002258) was listed on Shenzhen Stock Exchange. The company is mainly engaged in the R & D, production and sales of high-efficiency, low toxicity and low residue safety pesticides such as chlorinated pyridines, organophosphorus, sulfonylurea and substituted urea. Its products include more than 30 pesticides in three series of herbicides, pesticides and fungicides.
At present, Lier Chemical Co.Ltd(002258) is the largest R & D and production base of Chloropyridine herbicide series pesticide products in China and the largest manufacturer of glufosinate technical drug in China. The controlling shareholder of the company is Sichuan Jiuyuan Investment Holding Group Co., Ltd. and the actual controller is China Academy of Engineering Physics.
According to the data, from 2017 to 2021, Lier Chemical Co.Ltd(002258) the operating revenue increased from 3.084 billion yuan to 6.494 billion yuan, and the CAGR (compound annual growth rate) was 20.46%; The net profit attributable to the parent company increased from 402 million yuan to 1072 million yuan, with a CAGR of 27.79%.
“Last year’s performance growth was mainly due to the rise in the price of glyphosate, which pushed up the performance of Lier Chemical Co.Ltd(002258) .” The chemical industry analyst of a securities firm told the 21st Century Business Herald that in December 2019, the price of glyphosate was about 100000 yuan per ton. “Then it rose all the way to 380000 Yuan per ton in December last year, which increased by 2.8 times in two years, and the average price in the whole fourth quarter of last year was about 360000 yuan / ton.”
According to Sino-Agri Leading Biosciences Co.Ltd(603970) data, the average price of glufosinate technical drug was 243800 yuan / ton in 2021, with a year-on-year increase of 73.91%. In the fourth quarter of 2021, the average price of glufosinate technical drug was 363600 yuan / ton, with a month-on-month increase of 41.34%. In December, glufosinate technical drug reached 380000 Yuan / ton, a six-year high.
Lier Chemical Co.Ltd(002258) 2021 annual report shows that glufosinate is an organophosphorus herbicide and one of the three non selective herbicides in the world.
By the end of 2021, there were only five enterprises with l-glufosinate technical drug registration certificate in China, including Lier Chemical Co.Ltd(002258) , Yongnong biology, Shandong LvBa, Jiangsu Qizhou green and Meiji fruit of Japan. At present, Lier Chemical Co.Ltd(002258) plans to build 30000 T / A and 3000 t / a l-glufosinate in Mianyang base and Guang’an base respectively, of which the 3000 t / a production capacity of Guang’an base is expected to be put into operation in 2022.
Sinolink Securities Co.Ltd(600109) research report points out that in the first half of 2022, there is no new production capacity of glyphosate, and the price of glyphosate is expected to remain high Lier Chemical Co.Ltd(002258) the 10000 ton capacity of Guang’an base began to merge the methyl phosphorus dichloride project in December 2019. According to the announcement of the company, the Guang’an lill methyl phosphorus dichloride project is in normal trial operation at present; “We expect that the cost of glyphosate will be further reduced after the completion of line merging.”
China Southern Fund increased its position and its share price hit a seven-year high
“After paraquat was stopped production and banned, its substitution rate continued to increase, which further opened up space for the sales of glufosinate.” The above-mentioned chemical industry analyst of a securities company told the 21st Century Business Herald that the operating rate of glyphosate industry was low last year, and the investment of new production capacity was lower than expected. “According to our prediction, the demand for glyphosate will further increase this year.”
With the improvement of product prosperity and the growth of performance, Lier Chemical Co.Ltd(002258) has attracted the attention of more and more institutions.
Compared with the third quarterly report of 2021, Lier Chemical Co.Ltd(002258) has slightly changed the top ten shareholders of tradable shares in the 2021 annual report. The two-year holding collective asset management plan of Citic Securities Company Limited(600030) outstanding growth, which originally held 3.755 million shares, withdrew, while the new entrant is the one-year holding fund of southern xingrun value, which holds 1298162 million shares, ranking the fourth largest shareholder of tradable shares; The Southern Blue Chip growth fund, which originally held 3.5373 million shares, increased its holdings of 4.4632 million shares in the fourth quarter of last year. At present, it ranks as the seventh largest circulating shareholder with 8.005 million shares.
Meanwhile, the national social security fund 101 portfolio, which originally held 8.3433 million shares, also increased its position to 109707 million shares, ranking the sixth largest shareholder of circulating shares.
21st Century Business Herald reporter noted that the one-year holding period of southern xingrun value and the growth of Southern achievements are managed by star fund manager Shi Bo
In addition, the other two funds under the southern fund, southern advantageous industries and southern Ruihe, were regularly developed for three years. In the fourth quarter of last year, they also held 958000 shares and 1850000 shares Lier Chemical Co.Ltd(002258) .
At the same time of institutional position increase, the share price of Lier Chemical Co.Ltd(002258) has also reached new highs in the secondary market.
On March 4, 2022, Lier Chemical Co.Ltd(002258) closed at 35.6 yuan with an increase of 0.25%, which has increased by 5.54% since this year, and its increase last year reached 61.39%.
Previously, on March 1, the stock rose to 37.40 yuan, the highest price since June 15, 2015.
For the business plan for 2022, Lier Chemical Co.Ltd(002258) said in the annual report, “fully realize the normal production of Guang’an methyl phosphorus dichloride project, select the opportunity to complete the capacity expansion, and improve the company’s glyphosate production capacity and market competitiveness; at the same time, do a good job in project planning, make every effort to complete the government approval, and ensure that multi base refined glyphosate and other projects are implemented as planned”.
Debang securities research report pointed out that considering Lier Chemical Co.Ltd(002258) as the global leader of glyphosate, the scale and cost advantages are continuously improved, and the new products are expanded horizontally, the performance is expected to continue to grow and maintain the “buy” rating
