Main points:
I. New products continue to be sold.
Last year, the company officially launched a series of "kiss" water-soluble fertilizers to the market; at the same time, it developed new products such as poly (amino acid) controlled loss compound fertilizer and "Liukuo Anxin" 64% diammonium, which were put on the market in batches and the price was 5-10% higher than that of similar products. This year, the company has increased the development and sales of new products. The average selling price of products is higher than that of the same period last year, and the sales volume of new products is higher than that of the same period last year. The company's new product sales continue to expand, and the company's product structure is further optimized.
II. Lower costs and higher management
From the perspective of the price of upstream raw materials for phosphate fertilizer production, the price of phosphate ore has dropped by about 20% compared with the same period last year, which makes the company's production cost further lower; at the same time, the company strengthens its internal management and passes the internal simulation market-oriented assessment on internal management. strengthen production management, so that the cost of major products has been greatly reduced. Lower costs have further increased the overall profit growth rate of the company.
III. The export market of phosphate fertilizer is hot
According to statistics, from January to August this year, China's phosphate fertilizer exports increased by 73% compared with the same period last year, including 83% to 4.33 million tons of diammonium phosphate and 53% to 1.87 million tons of monoammonium phosphate. The demand for phosphate fertilizer is increasing in some large agricultural countries in the world. For example, India's phosphate fertilizer is in a period of continuous increase in imports, and its consumption is at its peak in the third quarter. Brazil's imports will also improve significantly in the second half of the year compared with the first half of the year.
IV. Benefit from the reform of state-owned enterprises
The actual control of the company is Tongling State-owned assets Supervision and Administration Commission, so it is expected to benefit from the policy of state-owned enterprise reform in terms of the company's development and the concept of state-owned enterprise reform in terms of stock price performance in the secondary market. On June 4, 2015, six countries Chemical and Anada issued a suspension notice, the controlling shareholder Tonghua Group plans to plan mixed ownership reform, marking the official opening of the reform of state-owned enterprises in Tongling City. As the capital platform of the group, the company is expected to play an important role in the mixed reform.
V. Investment strategy
The company is a national key development of large-scale phosphate and compound fertilizer production backbone enterprises. After years of development, the company has formed 3 million tons of chemical fertilizer production capacity, annual sales income of more than 5 billion yuan, total assets of more than 6 billion yuan, good prospects for future development. At the same time, as a state-owned enterprise, the company also has the theme of state-owned enterprise reform, which plays a catalytic role in the future development of the company and the performance of stock prices in the secondary market. At present, the company's internal costs are falling, management is rising, external new products and export markets are also expanding, and the company's performance is on a positive trend. It is estimated that the company's net profit from 2015 to 2017 is-128 million yuan, 30 million yuan and 204 million yuan respectively, corresponding to the EPS of-0.25,0.06,0.39 yuan respectively.
