Under the high-profile support of glyphosate, a number of listed companies with glyphosate as their main products in A-share have recently disclosed quite bright first quarter results or performance forecasts, with a year-on-year net profit increase of one to several times. Among them, the first quarter net profit of Sichuan Hebang Biotechnology Co.Ltd(603077) the double leader of glyphosate and Glyphosate in China exceeded 1 billion yuan, a year-on-year increase of more than 3 times, about one third of the net profit of last year.
glyphosate high view is expected to continue
According to statistics, in the first quarter of last year, the average price of glyphosate in China was about 30000 yuan / ton; In the first quarter of this year, China’s average price has exceeded 70000 yuan / ton, a year-on-year increase of more than 100%.
Glyphosate accounts for 30% of the global herbicide market. Since 2020, the global Shenzhen Agricultural Products Group Co.Ltd(000061) price has been rising, the planting enthusiasm of downstream farmers has increased, driving the collective rise in the price of agricultural related products, and the demand for herbicides has increased significantly. On the supply side, after the supply side reform in the past few years, the concentration of glyphosate industry has increased significantly, and the new production capacity is limited. According to the data of Zhuo Chuang consulting, the total output of glyphosate in China was 592000 tons in 2021, with a year-on-year increase of 7.6%.
At the beginning of 2021, the average price of glyphosate in China was 27000 yuan / ton, and at the end of the year, the price rose to about 80000 yuan / ton. Previously, China International Capital Corporation Limited(601995) had predicted that due to the limited expansion of the supply side, the long-term price system of glyphosate would be reshaped, and it might be difficult to fall back to the price level below 30000 yuan / ton. Although the price of glyphosate has been corrected since February this year, its price has stabilized and rebounded under the superposition of upstream cost price support and downstream rigid demand. According to the monitoring of Zhuo Chuang information, the current market price of glyphosate is about 64000 yuan / ton. The manufacturers mainly execute orders and have a strong willingness to support the price. Many industry insiders also said that the current is the peak procurement season, the market demand at home and abroad is gradually strong, and the glyphosate price may continue to operate at a high level.
The performance of leading enterprises increased significantly in the first quarter
On April 25, Sichuan Hebang Biotechnology Co.Ltd(603077) disclosed the performance report of the first quarter, realizing a net profit of 1.042 billion yuan, a year-on-year increase of 323.44% and a slight increase month on month. The company said that the main business of Lianhe alkali and glyphosate / glyphosate continued the high boom, helping the performance to maintain high growth. According to the operating data, the average sales price of glyphosate in the first quarter was 3581243 yuan / ton, an increase of 162.77% year-on-year; The average sales price of glyphosate raw powder was 6515647 yuan / ton, a year-on-year increase of 146.24%. The company once said on the investor interaction platform that through the improvement of capacity utilization, the capacity of glyphosate can reach 200000 tons in 2021, which is converted into 133300 tons of glyphosate. The company recently signed an investment agreement with Guang’an City, Sichuan Province, and will invest 12.5 billion yuan in Guang’an to lay out the world’s largest production base of glyphosate. After the completion of the project, the annual output of glyphosate can be 500000 tons, and the annual output value is expected to be about 20 billion yuan.
On April 25, Nantong Jiangshan Agrochemical & Chemicals Co.Ltd(600389) said on the investor interaction platform that the company’s preparation upgrading and intelligent packaging and storage technology transformation project had entered the trial production stage in December 2021. After the project was completed, the production capacity of glyphosate preparation was 200000 tons / year, and the specific output should be organized in combination with the market conditions of the preparation. The first quarterly report showed that the company achieved an operating revenue of 2.719 billion yuan, a year-on-year increase of 74.97%; The net profit attributable to the shareholders of the listed company was 646 million yuan, a year-on-year increase of 452.22%, close to 80% of the net profit of last year.
On April 25, the agricultural chemical industry leader Jiangsu Yangnong Chemical Co.Ltd(600486) released its first quarterly report, realizing a net profit of 904 million yuan, a year-on-year increase of 103.51%. The 2021 annual report previously disclosed by the company shows that herbicide has become one of the main products for the increase of the company’s profits.
The main products of Hubei Xingfa Chemicals Group Co.Ltd(600141) and Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) are also silicone and glyphosate products Hubei Xingfa Chemicals Group Co.Ltd(600141) first quarter performance forecast shows that the net profit attributable to the parent company is expected to be about 1.7 billion yuan, a year-on-year increase of 379.35%.
Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) in the first quarter, the revenue was 6.502 billion yuan, with a year-on-year increase of 70.86%; The net profit attributable to shareholders of listed companies was 1.225 billion yuan, a year-on-year increase of 336.71% and a month on month increase of about 18%. It is reported that the company has an existing glyphosate technical production capacity of 80000 tons / year, and Ningxia Xin’an 3000 tons / year glyphosate ammonium project was successfully completed in 2021. With the continuous enrichment of agrochemical products, the company’s ability to provide comprehensive plant protection solutions for the industry will continue to improve.
