On the evening of April 26, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) disclosed the 2020 annual report. During the reporting period, the company achieved an operating revenue of 5.374 billion yuan, a year-on-year increase of 44.64%; The net profit attributable to the parent company was 1.217 billion yuan, a year-on-year increase of 156.03%, both reaching a record high.
At the same time, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) also disclosed the first quarterly report of 2022. The company achieved an operating revenue of 1.489 billion yuan, a year-on-year increase of 20.52%; The net profit attributable to the parent company was 300 million yuan, a year-on-year increase of 4.61%.
An important reason for the growth of performance is that the market of rutile titanium dioxide, the main product of Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) is in a business cycle, the product supply is in short supply, and the sales price has increased significantly year-on-year.
overseas market demand is increasing
The data show that in 2021, the global production capacity of titanium dioxide is about 8.5 million tons and the output is about 7.4 million tons. In 2021, China’s titanium dioxide production capacity was about 4.4 million tons, an increase of nearly 10% over the same period in 2020; The output is about 3.8 million tons, an increase of nearly 8% over the same period in 2020. China’s titanium dioxide production capacity and output account for more than 50% of the global production capacity and output. In 2021, the export volume of titanium dioxide in China was about 1.3 million tons, more than 1 / 3 of its output.
At present, the global titanium dioxide market has basically formed a pattern dominated by four major foreign titanium dioxide enterprises (Kemu, tenor, Venator and Connors) and two major Chinese titanium dioxide enterprises ( Lb Group Co.Ltd(002601) , Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) ).
By the end of 2021, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) has formed an annual production capacity of nearly 400000 tons of rutile titanium dioxide, ranking second in China and sixth in the world.
In 2021, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) achieved 324200 tons of “rutile titanium dioxide finished products”, with a small increase year-on-year; The sales of titanium dioxide finished products was 323700 tons, with a small increase year-on-year.
According to the financial data, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) 2021 titanium dioxide achieved an operating revenue of 5.314 billion yuan, a year-on-year increase of 43.94%. The gross profit margin was 35.50%, with a year-on-year increase of 8.91 percentage points.
From a regional perspective, China’s operating revenue in Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) 2021 was 2.787 billion yuan, a year-on-year increase of 26.85%; The operating income abroad was 2.587 billion yuan, with a year-on-year increase of 70.38%, which shows that the demand for titanium dioxide in the overseas market is increasing.
Northeast Securities Co.Ltd(000686) research report believes that thanks to the reduction of production capacity of titanium dioxide abroad and the rapid economic development of developing countries in Southeast Asia, the overseas demand for titanium dioxide has increased rapidly, and the export growth rate will reach 21% in 2020.
A chemical industry analyst at a brokerage told the 21st Century Business Herald that last year’s export was about 1.3 million tons, and this year’s export should still grow. “The demand of some developing countries in Southeast Asia is still growing.”
this year’s peak season may continue to be “in short supply”
Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) the progress of “200000 t / a titanium dioxide post-treatment project” by the end of last year was only 17.42%. The company has postponed its completion and operation time to “the end of December 2022”.
In addition to titanium dioxide business, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) another attraction for institutional investors may be the lithium iron phosphate project.
In 2021, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) announced that the company plans to build the lithium iron phosphate project with an annual output of 500000 tons in three phases, mainly to build the lithium iron phosphate production line and supporting facilities.
The “lithium iron phosphate project with an annual output of 500000 tons” is part of the “ferrous cycle”, that is, the product of the “waste acid cycle”, water-soluble monoammonium phosphate, reacts with ferrous sulfate in the production of titanium dioxide to produce iron phosphate, and then uses iron phosphate, lithium carbonate and organic carbon source to obtain lithium iron phosphate through the processes of mixing rough grinding, fine grinding, spray drying, sintering, crushing, etc. Among them, the “lithium iron phosphate project with an annual output of 500000 tons” is constructed in three phases. The first phase of the project realizes an annual output of 500000 tons of iron phosphate and 100000 tons of lithium iron phosphate; The design capacity of phase II and phase III projects is 200000 tons of lithium iron phosphate per year. The construction of phase II and phase III projects will be carefully promoted according to the construction of a series of investment projects, product market capacity and demand.
Northeast Securities Co.Ltd(000686) research report believes that the upstream phosphorus source of lithium iron phosphate and its raw materials are subject to strict environmental protection policies and limited capacity expansion, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) is one of the first chemical enterprises to enter the lithium iron phosphate industry, with obvious first mover advantages. “In addition, the company has built a solid cost moat by virtue of the recycling of waste acid and ferrous sulfate and other by-products produced by titanium dioxide by sulfuric acid process, the integrated operation of the park and the reduction of transportation and raw material costs. Through the use of lower cost iron, phosphorus, acid and energy consumption, the production cost of lithium iron phosphate is expected to have a competitive advantage compared with the traditional liquid-phase method and solid-phase method.”
Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) disclosed that in the future, the company plans to focus on the four business segments of “resources, titanium chemical industry, new materials and new energy” through the strategic means of “endogenous growth and epitaxial M & a”, comprehensively layout the upstream and downstream of the industrial chain, create a “sulfur phosphorus iron titanium lithium” green circular industrial economy, and strive to form one of the largest titanium dioxide production enterprises by sulfuric acid process in the world and build the most competitive lithium iron phosphate production base.
The chemical industry analyst of the above securities company told the 21st Century Business Herald that the new production capacity of titanium dioxide in China this year is about 500000 tons, “but the new production may be only 400000 tons. Therefore, the annual output of titanium dioxide this year is about 4.2 million tons, an increase of only about 10% over last year. There is still a tight balance, and there may be a shortage of supply in the peak season.”
Wells Fargo’s three funds stick to
Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) since the high price of 20.60 yuan on August 9 last year, the stock has been in a downward state.
On April 26, 2022, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) decreased by 6.79% to close at 6.59 yuan, the lowest intraday drop to 6.56 yuan, the lowest price in nearly 15 months.
At present, the market value of Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) is 13.5 billion, which is about 28.8 billion less than the market value of 42.3 billion on August 9 last year.
The 21st Century Business Herald reporter noted that the three Wells Fargo funds that built their positions in the first quarter of last year have always held Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) , and they also increased their positions slightly in the fourth quarter of last year.
Compared with the third quarter of last year, Wells Fargo balanced preferred no change in shareholding in the fourth quarter of last year, ranking the fourth largest shareholder of circulating shares with 38743302 shares; However, the rich country growth pilot and the rich country low-carbon economy increased their positions respectively, ranking the fifth and sixth largest circulating shareholders of the company with 36836060 shares and 29578173 million shares.
In the first quarter of 2022, the share price of Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) fell by 22.24%, and the positions of the above three funds of Wells Fargo fund remained unchanged.
It is worth noting that BEIXIANG capital increased its position slightly in the fourth quarter of last year and the first quarter of this year Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) . As of March 31, 2022, BEIXIANG capital ranked the seventh largest circulating shareholder of the company with 29578173 million shares.
