Jiangsu Changqing Agrochemical Co.Ltd(002391) (002391)
Continuous volume of multiple products
At present, the company has a herbicide production capacity of 22600 T / A, a pesticide production capacity of 9500 T / A and a fungicide production capacity of 1400 T / A. The company’s projects under construction are continuously promoted, and multiple products continue to be produced in large quantities. Yichang project of the company, 8500 tons of chemicals and 13700 tons of technical drugs in phase I; Phase II chemical products are 20000 tons and technical drugs are 16500 tons. The first phase of the project is expected to be completed and put into operation in 2021. Four products: 2000 tons of 2,6-diisopropyl aniline has successfully reached the production capacity, 2000 tons of Kungfu pyrethrin is under commissioning, 600 tons of fipronil and 3000 tons of thiamethoxam are in the equipment installation stage, and it is expected that the company’s performance will be increased in 2022.
At the same time, the company has 11000 tons of dicamba and plans 3500 tons of glufosinate. These two varieties are herbicides used for supporting transgenic crops, and have broad prospects in the future.
Pesticide industry boom high
At present, driven by the rising price of raw materials and demand, the prices of the company’s main pesticide products imidacloprid, acetamiprid, Nicosulfuron, Kungfu pyrethrin, thiamethoxam, poisoned maidservant and fipronil are at a medium and high level. The company’s product orders are sufficient and its profitability is good. Looking forward to 2022, Shenzhen Agricultural Products Group Co.Ltd(000061) prices are still high and agrochemical boom is upward.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 321 million, RMB 450 million and RMB 584 million respectively, corresponding to pe17, 12 and 9 times. Maintain the “buy” rating by comprehensively considering the company’s future operation and capacity increment.
Risk tips: the risk of project construction falling short of expectations, the risk of price decline of main products, the risk of price fluctuation of main raw materials, the risk of international trade friction, the risk of environmental protection and safe production, the risk of exchange rate fluctuation and the risk of intensified competition in the same industry.
