Focus on the classified utilization of wet-process phosphoric acid to form a unique model of "acid + fertilizer + salt". The company focuses on the classification and utilization of wet-process phosphoric acid, perfecting the integrated industrial chain from the production of sulphuric acid from pyrite and the flotation of phosphate rock to the production and sale of phosphate and phosphate fertilizer products. it has formed a unique product line model of "acid + fertilizer + salt", which is suitable for its own development.
Committed to technological development and innovation to create new profit growth points. Through continuous research and development of flotation and utilization of medium and low grade phosphate ores and purification of wet-process phosphoric acid, the company has improved the value of unit phosphate ores. The production and sales of heavy superphosphate and rich superphosphate began in 2014 and 2015 respectively, which is the extension of the hierarchical utilization of wet-process phosphoric acid. The development of two new products provides a new profit growth point for the company.
The demand for feed-grade calcium hydrogen phosphate is expanding, and the main business is growing steadily. The demand for feed-grade calcium hydrogen phosphate is constantly expanding. With the rapid development of the feed industry in the domestic market, the demand for feed-grade calcium hydrogen phosphate in the international market is also expanding year by year. The company has a strong competitive advantage in the feed grade calcium hydrogen phosphate market.
The cost advantage is obvious, and the gross profit margin is higher than that of similar phosphorus chemical listed companies. The gross profit margin of the company is higher than that of the listed companies of comparable phosphorus chemical industry, on the one hand, it is the cost advantage brought by the location; on the other hand, it is the cost advantage brought by the company's technological innovation, using the wet process to produce phosphoric acid, which greatly reduces the cost of phosphoric acid production, thus reducing the cost of the main products.
The company's fund-raising projects are carried out around the main business to further enhance the competitiveness of the company. The fund-raising project will combine the fund-raising investment projects with the existing system, expand the advantages of enterprises, promote industrial upgrading, increase industrial added value, further improve the company's industrial chain, and enrich the product structure. maintain the company's competitive advantage and market position in the field of graded utilization of wet-process phosphoric acid.
Profit forecast. We forecast that the net profits of shareholders belonging to listed companies from 2016 to 2018 will be 684 million yuan, 782 million yuan and 897 million yuan respectively, and the EPS will be 0.64 yuan, 0.76 yuan and 0.95 yuan respectively, with a compound growth rate of 21.8% in the next three years. The company's offering price is 10.25 yuan, corresponding to a price-to-earnings ratio of 17 times earnings in 2015, with a lower offering price. Taking into account the development and progress of the industry, as well as the company's leading technological advantages and the ability of steady growth, we believe that the reasonable valuation of the company is 20 times the price-to-earnings ratio in 2016, with a target price of 10.25-12.8 yuan, and investors are advised to apply actively.
Risk hint. The risk of rising prices of raw materials, the risk of price fluctuations of major products, and the risk of market capacity of major products.