The company is a domestic coal chemical enterprise with advanced clean coal gasification technology equipment, which has been committed to creating an integrated upstream and downstream industrial chain and improving the product structure. At present, the company's coal chemical industry chain is relatively complete, and the product structure can be adjusted in time according to the changes of market demand, which can effectively resist the risk of market fluctuations.
The price of urea in China rose steadily after bottoming out at the end of July. Under the influence of factors such as cost, export and the start-up of the late winter storage market, the upward trend is expected to continue, and the profitability of urea will also be significantly improved.
As synthetic ammonia is a high energy-consuming industry, which is greatly affected by energy saving and emission reduction, and the price of urea is affected by export and other factors, the price of urea, ammonium nitrate, nitric acid and other industries compete for synthetic ammonia in the market. the rise in the price of synthetic ammonia has promoted the price of concentrated nitric acid, ammonium nitrate and other products to rise continuously.
At present, the company has a production capacity of 200000 tons / year of dilute hydrogen peroxide, supporting a production capacity of 40, 000 tons / year of 50% strong hydrogen peroxide. This year, the production capacity of Shengqiang Chemical Industry will be expanded to 300000 tons by using Guangdong Zhongcheng technology. It contributes more than 50% of the net profit in the first half of the year, which is a new growth point of the company's net profit.
Guizhou Xingyi Aozichong Coal Mine (anthracite pulverized coal) has entered the production stage, the company's coal self-sufficiency rate will gradually increase, and the comprehensive gross profit margin of the company's products such as urea and ammonia nitrate will be further increased.
In the future, if Zhongcheng Chemical Industry is successfully merged into Liuhua Group, it will form the possibility of hydrogen peroxide competition between Zhongcheng Chemical Industry and Shengqiang Chemical Industry, which is controlled by Liuhua Group. Therefore, in order to solve the inter-industry competition in the future, it is highly expected to inject Zhongcheng chemical assets into listed companies.
We downgrade the company's EPS from 2010 to 2012 to 0.32 yuan, 0.49 yuan and 0.79 yuan respectively. The current stock price corresponds to the company's PE of about 34, 22 and 14 in the next three years. We maintain the company's buy rating.