Benefiting from the rise of glyphosate price, the performance of Listed Companies in glyphosate industry continued to grow in the first quarter of 2022.
Statistics show that as of April 21, 2022, five glyphosate listed companies have disclosed the operating data of the first quarter of 2022. Among them, Nantong Jiangshan Agrochemical & Chemicals Co.Ltd(600389) 2022 achieved a net profit of 646 million yuan attributable to shareholders of listed companies from January to March, with a year-on-year increase of 452.22% Four companies, including Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) , Hubei Xingfa Chemicals Group Co.Ltd(600141) , Sichuan Hebang Biotechnology Co.Ltd(603077) , Shandong Weifang Rainbow Chemical Co.Ltd(301035) , are expected to double their performance in the first quarter of 2022.
Liu Xin, an analyst of Zhuo Chuang information, said in an interview with Securities Daily, "Glyphosate industry companies became popular in the first quarter of 2022. They mainly benefited from the high price of glyphosate and made considerable profits. Although the price of glyphosate technical drug in the first quarter decreased compared with the high price of 80000 yuan / ton last year, the price of 28500 yuan / ton was still high compared with the beginning of 2021. The recent price of glyphosate technical drug was 64500 yuan / ton."
glyphosate price high operation
push up the performance of listed companies
As the most important non selective herbicide in the world, glyphosate is the largest single pesticide in the world. In 2021, the price of glyphosate also continued to rise, driven by the rising purchase cost of raw materials such as glycine and yellow phosphorus.
According to the data of Baichuan Yingfu, on January 6, 2021, 95% of glyphosate technical drug suppliers quoted 29000 yuan / ton, the actual transaction reference price was 27500 yuan / ton to 28000 yuan / ton, and the high-end transaction was 28500 yuan / ton. At that time, manufacturers' orders were mostly arranged until February 2021. There was little sales pressure, buyers waited and saw, and the high price trading volume was small. Most of the orders were executed in the early stage. On December 31, 2021, the quotation of glyphosate technical drug supplier ranged from 83000 yuan / ton to 85000 yuan / ton, and the transaction reference price ranged from 80000 yuan / ton to 80500 yuan / ton. Compared with the transaction price at the beginning of 2021, the price of glyphosate increased nearly twice at the end of 2021. In the first quarter of 2022, the price of glyphosate remained at a high level although it was lower than the previous high.
Thanks to the rise in product prices, listed companies in glyphosate industry performed well in the first quarter of 2022. Nantong Jiangshan Agrochemical & Chemicals Co.Ltd(600389) which has a history of pesticide production for more than 60 years has taken the lead in disclosing the first quarterly report of 2022. According to the financial report, the operating revenue of the company in the first quarter of this year was 2.719 billion yuan, and the net profit attributable to the shareholders of listed companies was 646 million yuan, with a year-on-year increase of 74.97% and 452.22% respectively. The performance reached a record high in the same period.
In an interview with the Securities Daily, the relevant person in charge of the company said that although previously affected by the dual control of energy and the price fluctuation of raw materials, the upstream and downstream industrial chain of glyphosate and the market production, supply and marketing system have been impacted to varying degrees. However, on the one hand, enterprises practice their internal skills and make efforts in capacity utilization and management in all aspects. On the other hand, they focus on upstream and downstream to ensure smooth logistics and no problems in the supply chain. The overall performance maintained stable growth.
This week Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) will also disclose the first quarterly report of 2022. According to the performance forecast of the first quarter disclosed by the company, the company's main products glyphosate and silicone in the first quarter continued to be prosperous since 2021 due to the influence of supply and demand, and the product prices continued to operate at a high level. The company expects the net profit attributable to the shareholders of listed companies in the first quarter of 2022 to be 1.15 billion yuan to 1.25 billion yuan, with a year-on-year increase of 313% to 349%.
full orders and rapid inventory consumption
most enterprises produce at full capacity
Guosen Securities Co.Ltd(002736) research report shows that at present, the global glyphosate production capacity is about 1.1 million tons. In addition to Bayer's 380000 tons of overseas production capacity, the remaining 700000 tons of production capacity are all concentrated in China.
The reporter combed the glyphosate production capacity in China and learned that at present, the production capacity of Nantong Jiangshan Agrochemical & Chemicals Co.Ltd(600389) glyphosate is 70000 tons / year, the production capacity of Sichuan Hebang Biotechnology Co.Ltd(603077) glyphosate is 50000 tons / year, and the production capacity of Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) glyphosate is 80000 tons / year, with an annual output of about 85000 tons. More than 10000 tons of technical drugs are purchased for preparation production every year, and the annual sales volume is equivalent to nearly 100000 tons of technical glyphosate.
At present, the company with the highest production capacity is Hubei Xingfa Chemicals Group Co.Ltd(600141) , and its holding subsidiary Taisheng chemical has a production capacity of 130000 T / a glyphosate. At the same time, neimengxing, a wholly-owned subsidiary of Taisheng chemical, found a production capacity of 50000 T / a glyphosate. It is reported that Inner Mongolia Xingfa has a glyphosate production capacity of 50000 tons / year under construction. It is planned to be completed and put into operation in the third quarter of this year. At that time, the glyphosate production capacity of the company will be combined and increased to 230000 tons / year.
"Throughout the year, the fourth quarter and the first quarter are the traditional peak seasons for winter storage and spring farming procurement in the northern hemisphere. It is difficult for production enterprises outside China to have sufficient time to build inventory. Most of the production lines of enterprises are operating at full capacity. Production in some areas may be affected by epidemic factors." The staff of a glyphosate listed company in Jiangsu said.
"Our orders have been relatively saturated. At present, we focus on epidemic prevention and production, and try our best to ensure that the production line runs at full capacity." Referring to the current production situation of the enterprise, Nantong Jiangshan Agrochemical & Chemicals Co.Ltd(600389) relevant person in charge told reporters.
As a "magic weapon" for the performance growth of glyphosate listed companies, can glyphosate prices continue to operate at a high level? During the interview, Liu Xin told reporters, "Although the price of glyphosate rose slightly in early April due to the increase of foreign trade orders, I think the overall market of glyphosate technical drugs showed a downward trend in the second quarter. On the one hand, with the continuous preparation and ordering of goods in the southern hemisphere, the downstream demand will tighten and the trading rhythm will slow down in the middle and late second quarter; on the other hand, some enterprises will launch new production capacity in the middle of this year, the market supply is gradually improving, and the summer is the off-season of pesticides, The ability to digest the supply of goods downstream is not strong. "
"However, from the perspective of gross profit margin, although the price of glyphosate in the first quarter of this year has declined compared with the high level of last year, the profit margin of glyphosate is still considerable due to the fluctuation and decline of costs. The gross profit margin of glyphosate products in the first quarter of this year was 47.44%, while the gross profit margin of glyphosate in the first quarter of 2021 was only 12.79%." Liu Xin added.
