6 Huadong Medicine Co.Ltd(000963) released the performance express on March 7, and the operating revenue in 2021 was 64.067 billion yuan, with a year-on-year increase of 22.94%; The net profit was 3.637 billion yuan, a year-on-year increase of 123679%; The basic earnings per share is 1.98 yuan.
The Hubei Xingfa Chemicals Group Co.Ltd(600141) performance of another phosphorus chemical enterprise also “burst”. In 2021, the company achieved a net profit of about 4.2 billion yuan, a year-on-year increase of nearly 6 times, which has set the highest profit record in the company’s history.
It is worth mentioning that in the short term, the conflict between Russia and Ukraine will exacerbate the tension between global phosphate fertilizer supply and demand; In the long run, the leading enterprises rely on the advantages of resources and production capacity to compete for cross-border transformation to the field of new energy. The organization expects that the upstream and downstream of the phosphorus chemical industry chain will continue to resonate strongly.
product prices rose sharply
Yunnan Yuntianhua Co.Ltd(600096) performance express shows that the increase of the company’s net profit significantly exceeds the revenue, which is due to the sharp rise in the prices of the company’s main products.
Yunnan Yuntianhua Co.Ltd(600096) announced that during the reporting period, the global fertilizer industry was affected by the epidemic, the supply was insufficient, and the relationship between supply and demand continued to be tight. At the same time, the cyclical rise of agricultural industry and the rise of Shenzhen Agricultural Products Group Co.Ltd(000061) price have promoted the price rise of chemical fertilizer products. With China’s economic recovery, the market prices of chemical products of polyoxymethylene, yellow phosphorus and calcium feed companies have risen.
According to public information, Yunnan Yuntianhua Co.Ltd(600096) chemical fertilizer has a total capacity of 8.76 million tons / year, including 5.55 million tons / year of basic phosphate fertilizer. In addition, the company’s compound (mixed) fertilizer production capacity is 1.21 million tons / year and urea production capacity is 2 million tons / year.
Hubei Xingfa Chemicals Group Co.Ltd(600141) also said in the performance express that affected by the relationship between market supply and demand, the phosphorus chemical industry ushered in a boom cycle in 2021. The sales prices of the company’s main products glyphosate, dimethyl sulfoxide, yellow phosphorus and other products increased significantly year-on-year, and the profitability was significantly enhanced.
According to choice data, the wholesale price index of phosphate fertilizer increased by about 42% in 2021 and is still running at a high level this year; Due to the superposition of the demand of new energy industry, the price of phosphate rock rose more rapidly, and the price index rose by about 90% throughout the year.
According to the announcement data, the reporter of E company found that under the tight market pattern of supply and demand, the performance of many phosphorus chemical industry enterprises in 2021 is expected to be good.
For example, Hubei Yihua Chemical Industry Co.Ltd(000422) 2021 pre profit of 1.5 billion yuan – 1.7 billion yuan, with a year-on-year increase of 119539% – 136811% Sichuan Development Lomon Co.Ltd(002312) 2021 pre profit of 900 million yuan – 1.1 billion yuan, with a year-on-year increase of 34.58% – 64.49% Guizhou Chanhen Chemical Corporation(002895) it is estimated that the net profit in 2021 will be 314371 million yuan, with a year-on-year increase of 120% – 160%.
Under the sharp rise in performance, most phosphorus chemical enterprises gained a good increase last year. According to chioce data, Hubei Xingfa Chemicals Group Co.Ltd(600141) increased by 247% last year and Yunnan Yuntianhua Co.Ltd(600096) was 223%; China stock market news phosphorus chemical index (803045) reached an all-time high of 198008 in September last year, with the highest increase of 310% in the whole year.
cross border new energy industry chain
So, can the phosphorus chemical industry continue to operate in a high business cycle.
According to the Research Report of Anxin securities, the winter reserve fertilizer and spring ploughing fertilizer market was launched in 2022, and the resumption pace of mainstream phosphorus and compound fertilizer enterprises was earlier than that in previous years. The time when the inventory pressure of phosphorus fertilizer was the greatest has passed, and the price remained strong. With the gradual expansion of spring ploughing and fertilizer preparation, China’s peak demand season is coming, the advance receipt and waiting volume of ammonium phosphate enterprises is sufficient, and some export orders in the second quarter are expected to pass the legal inspection, The export will be liberalized, the internal and external demand will be better, and the price of phosphate fertilizer has upward space.
At the same time, phosphate rock resources are non renewable, the supply of phosphate rock is limited under the production restriction policy, the price of phosphate rock at home and abroad has reached an all-time high, and the prosperity of the global phosphate rock market may continue to rise.
It is noteworthy that in the short term, the conflict between Russia and Ukraine will exacerbate the tension between global phosphate fertilizer supply and demand.
Everbright Securities Company Limited(601788) research report said that Russia is one of the three largest exporters of chemical fertilizer in the world and occupies an important position in the international chemical fertilizer supply chain. Russia ranks first in nitrogen fertilizer exports, second in potassium fertilizer exports and third in phosphate fertilizer exports. Similarly, with the sanctions imposed by European and American countries on Russia, there will be an obvious shortage of global fertilizer supply, which will raise the global fertilizer price, which may be good for Chinese fertilizer enterprises.
It is noteworthy that phosphorus chemical enterprises rely on the advantages of resources and production capacity to strive for cross-border transformation to the field of new energy, which will open up space for the industry’s long-term performance.
On February 16, Yunnan Yuntianhua Co.Ltd(600096) announced that it would join hands with upstream and downstream lithium battery enterprises such as Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) , Huayou holdings and so on to reach a cooperation agreement with Yuxi Municipal People’s Government of Yunnan Province and plan to build a new energy battery industry cluster; In November 2021, Hubei Xingfa Chemicals Group Co.Ltd(600141) and Zhejiang Huayou Cobalt Co.Ltd(603799) jointly planned the construction of 500000 tons of iron phosphate, 500000 tons of lithium iron phosphate and related supporting projects, of which 100000 tons of iron phosphate project is planned in phase I Hubei Yihua Chemical Industry Co.Ltd(000422) also announced its intention to cooperate with Ningbo bangpudacheng integrated battery material supporting chemical raw material project under Contemporary Amperex Technology Co.Limited(300750) in October 2021.
The organization believes that the cross-border actions of Yunnan Yuntianhua Co.Ltd(600096) and other phosphorus chemical enterprises are conducive to give full play to their industrial chain advantages, enhance the diversified and in-depth development of phosphate rock resources, and accelerate the extension, transformation and upgrading of phosphorus chemical industry chain.
Yunnan Yuntianhua Co.Ltd(600096) today, the results of the company’s transformation and upgrading to non fertilizer businesses such as fine phosphorus chemical industry and fluorine chemical industry are gradually revealed. During the reporting period, the operating performance of the company’s joint-stock companies improved and the investment income increased.
