Chemical industry, agriculture and new materials develop together. Relying on its own 98 million tons of salt reserves and high-quality and low-price natural gas resources in southwest China, combined with first-class industrial technology and independent innovation, the company continues to maintain a leading position in the traditional business field. The company has formed five business sectors, such as alkali, diglyphosate, glyphosate, glass and methionine, and is actively laying out photovoltaic glass and module packaging business.
The company's five major sectors of business are domestic or sales area industry leaders. Lianalkali plate includes 1.1 million tons / year soda ash and 1.1 million tons / year ammonium chloride, which belongs to the leading enterprises in the southwest sales area; glyphosate plate includes 180,000 tons / year diglyphosate and 50,000 tons / year glyphosate, the company adopts IDAN method, and the company's double glyphosate and glyphosate are at the first-class level in the global industry in terms of environmental protection, technology, quality and cost. The glass plate includes 465,000 tons / year glass / smart special glass and 4.3 million tons / year Low-E coated glass. The business covers Chongqing, Guiyang and Kunming, making it the first choice for users with high quality demand in the sales area. 70,000 tons of liquid methionine project has produced qualified products in December 2020, is currently in the capacity load climbing stage, and is expected to be officially put into production in the second half of this year. Israel S.T.K. Bio-pesticide, bio-veterinary medicine business; 2.1 million tons / year salt mine, natural gas supply and its pipeline transportation industry, oil sales and other business.
Raw material cost support + downstream demand for better, glyphosate prices continue to rise. With the gradual recovery of the global economy in the past 21 years, and as an important agricultural product, there is a rigid demand for glyphosate. It is expected that the prosperity of the glyphosate industry will continue to pick up. According to Baichuan data, the average monthly price in the first quarter rose to 355,000 yuan / ton from 283,000 yuan / ton in January. The supply of glycine is tight, which gives strong support to glyphosate in terms of cost.
The demeanor of pure alkali scene is improved, and the pattern of supply and demand is better. According to Baichuan data, the soda ash market increased by 300-600 yuan / ton in the first quarter of 21 years. After the Spring Festival, downstream factories resume production, inventory drops rapidly, and there is a tight supply pattern in some areas. We expect that with the increase in the number of soda ash enterprises that began downtime and overhaul in the second quarter, it will be good for soda ash inventory consumption, while downstream glass enterprises will also have some new production capacity, as well as photovoltaic glass new projects will be put into production one after another, will further increase the demand for soda ash. The average sales price of the company's co-production of ammonium chloride in the first quarter is about 695 yuan / ton, and the average price in the same period of 20 years is about 550 yuan / ton, an increase of about 26% over the past 20 years.
Glass prices continue to rise, the layout of the photovoltaic industry. In the first quarter of 21, float glass continued the high demeanor of last year, and the average price of glass in the national market in April was about 2230 yuan / ton. Based on the good development prospect of the photovoltaic industry, the company laid out the photovoltaic glass production line and photovoltaic module packaging line in the second half of 20 years, and the production base in Jiangjin, Chongqing, started in January this year, among which the 1000t/d photovoltaic glass panel production line will be ignited at the end of March 2022 according to the project plan, the company expects the first phase of the project to be put into production in June 22, and is expected to contribute to the company's performance in the second half of 22 years.
Profit forecast and investment rating. We predict that the EPS of the company in 20-22 is 0.00,0.12,0.17 yuan. In 2021, the value range of 18-22 times PE, is 2.16-2.64 yuan, which is better than that of the big city for the first time.
Risk tips. Product prices fell; downstream demand growth was less than expected.
