Many factors lead to poor performance of listed fertilizer companies

Affected by many negative factors such as low temperature rain and snow in spring, natural drought and flood disasters in the south, excess capacity of nitrogen and phosphorus, rising resource prices, and export tariff control, the operating performance of 23 listed companies in the first half of the year was mixed: 9 nitrogen and phosphate fertilizer companies turned losses. One potash profit fell for the first time, and other companies continued to lose money. According to the report on the performance of listed companies as of August 31, the reporter concluded that: Although it is expected that the fertilizer market will gradually pick up in the second half of the year, competition and elimination will be even more severe.

In the first half of this year, the domestic chemical fertilizer output reached 33.972 million tons, which is the same as that of the same period in the previous year, which was an increase of 6.4%. Of which 23.864 million tons of nitrogen fertilizer, an increase of 2.3%; 16.505 million tons of phosphate fertilizer, an increase of 19.6%; 1.429 million tons of potash, an increase of 14.7%. Although the output of major products continued to grow, resource prices and energy price reforms put pressure on manufacturers. The performance of listed fertilizer companies in the first half of the year has been outstanding. Through the analysis of the main indicators such as the operating profit of the 23 listed fertilizer companies in the first half of the year, the net profit attributable to shareholders of the parent company, return on net assets, basic earnings per share, etc., it was found that 10 companies turned losses into operating income and net profit. And the performance of the diversified fertilizer companies is obviously better than that of a single fertilizer company.

In terms of nitrogen fertilizers, due to climatic factors, coal price increase, overcapacity, and weak prices, business performance is obviously ineffective. The enterprises with growth of net profit attributable to the parent company include Chenzhou Dahua 61.284 million yuan, +15.63%, Hubei Yihua 328 million yuan, +199.84%, Liuhua shares 46.50 million yuan, +593.15%, and Shuanghuan Technology 28.832 million yuan. , +245.97%, Juhua shares 207 million yuan +233.39%, Xinlianxin 98.15 million yuan, +52.5%, the rest are in a loss state, the loss range from 33% to 381% compared to the same period.

In terms of phosphorus compound fertilizers, due to resource price reforms, price increases, overcapacity in the industry, and obstructed product exports, the performance growth was constrained, but it was significantly better than nitrogen fertilizers and began to pick up. Enterprises with net profit growth attributable to the parent company include: Sinochem Fertilizer 340 million, +141.06%, Six-Country Chemicals 46.467 million, +131.46%, Baritas 34.96 million, +212.68%, and Yuntianhua 190 million. , +264.95%, at a loss of the company is Lubei Chemical.

In terms of potash fertilizer, imports and domestic supply continued to increase, and the rational fall in potash prices led Salt Lake Group to 976 million yuan, +8.11%, and Salt Lake Potash 773 million yuan, and -2.00% earnings growth slowed.

Analysts in the industry believe that although the economic situation at home and abroad has stabilized and stabilized in the first half of the year, the situation in the later period is still severe, and the pace of adjusting and optimizing the economic structure will also accelerate. It is expected that the market competition will become fiercer in the second half of the year. The enterprises that suspend production, transfer or delay projects of nitrogen fertilizer will continue to increase, and the management of phosphate fertilizer and potash fertilizer will gradually recover.

Fertilizer companies must adapt to the current “requirements for transforming the mode of economic development” and make greater efforts in product structure, technological innovation, and marketing network construction. Scientifically planning and putting into production projects can only “emphasize the importance” in the complex and ever-changing market for shareholders. profit.