Introduction of the company and the company
Sinochem Fertilizer Holdings Co., Ltd. is the largest integrated chemical fertilizer enterprise in China. The company's main responsibilities include the production, import and export, sorting and retail of chemical fertilizer raw materials and finished fertilizer products, as well as technical research and development and services of chemical fertilizer related services and products, with more than 2000 sub-dealers, making it the largest trade in chemical fertilizer in the country. Canada Fertilizer, the company's second largest shareholder, is the largest fertilizer producer in the world.
An outline of the vote
In the first half of the year, the company recorded a net income of 225.4 billion yuan, an increase of 22 percent in the same period last year; realized gross profit and profit profit were 871 million yuan and 546 million yuan respectively, an increase of 10.1 percent and 9.9 percent respectively; and earnings per share were 0.078 yuan, an increase of 7.8 percent over the same period last year. The company's steady growth in the first half of the year benefited from the recovery in the volume and intensity of the company's major chemical fertilizer products, as well as the decline in production costs.
Since the first half of 2012, the price of phosphorus has risen rapidly. At the beginning of 2012, the company invested 1.38 billion yuan to complete 100% of the stock rights of the company, and successfully acquired 300 million yuan of phosphorus resources. It is estimated that the company made a profit of 35.5 million yuan in the first half of the year.
At present, most phosphorus enterprises mainly use phosphate for their own use, and the market supply of phosphate minerals does not meet the demand. In the first half of this year, the government also stepped up the integration of phosphorus resources and strengthened the determination rights of phosphate enterprises. We expect that the demand and price of phosphorus in the second half of the year will continue to grow steadily, which is further good for the company in the second half of the year.
According to the 12th five-year Plan of the chemical fertilizer industry, it is estimated that by 2015, the production capacity of large-scale chemical fertilizer enterprises will reach more than 80%. As one of China's major chemical fertilizer production enterprises, the company has benefited a lot from the industry integration, such as increasing production capacity to capture the market share, speeding up production and obtaining raw materials, and using technology and equipment to control costs.
The company's current price-to-earnings ratio is 13.5 times, which is still lower than the industry average, and the price-to-earnings ratio is also relatively low. We expect that the company will achieve its profit target for the whole year, and its valuation will be gradually revised by the market. In the final examination, its 6 monthly headings will be raised to HK $2.07 to maintain the "eligible" level.
In the first half of the year, the company recorded a net income of 225.4 billion yuan, an increase of 22 percent in the same period last year; realized gross profit and profit profit were 871 million yuan and 546 million yuan respectively, an increase of 10.1 percent and 9.9 percent respectively; and earnings per share were 0.078 yuan, an increase of 7.8 percent over the same period last year. The company's steady growth in the first half of the year benefited from the recovery in the volume and intensity of the company's major chemical fertilizer products, as well as the decline in production costs. In the first half of the year, the price of China's chemical fertilizer market rose, and the company's average sales increased by 13.2% over the same period last year. On the other hand, due to the low overall storage level of the chemical fertilizer market at the beginning of the year, the domestic demand for chemical fertilizer increased in the first half of the year, and the policy on the use of chemical fertilizer increased, resulting in an increase in the volume of chemical fertilizer products of the company. In addition, the decline in coal production has also reduced the company's average production cost.