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					Hubei Yihua
The third quarterly company officials about future market direction as
follows:
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"Urea and phosphate, the 09 since the overall demand is still
sluggish, prices have shown continued to fall, the phenomenon is not
busy season, but the demand for agricultural products are rigid
demand, as the stock gradually digested, domestic and international
fertilizer demand growth is still relatively OK.
The recent sharp rise in international gas prices are expected to push
up the international urea prices, domestic natural gas prices also
expected to become increasingly strong, these two heads of urea on
coal companies will have a positive impact; With the gradual
pre-digested high-priced stocks of sulfur and phosphorus earnings are
getting better and better.
In late October and early November, phosphorus and nitrogen will have
off-season resume export tariffs, the current price gap between
domestic and foreign small diammonium phosphate, urea prices slightly
lower than the international level, the greater significance of
exports is ease domestic overcapacity.
PVC, the real estate operating rates continue to rise, and thus boost
the demand for PVC; and crude oil and natural gas prices are expected
to push up the cost of PVC, ethylene, calcium carbide PVC represented
the relative advantage of coal chemical industry. "
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Companies and highlights:
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"Significant increase of urea. First half of 2009, the company
income 1.988 billion yuan of urea, an increase of 69.33%. Urea revenue
growth from 60 million tons of synthetic ammonia subsidiary of the
Joint Chemical / 104 tons of urea project put into production. DAP ,
PVC and pentaerythritol income has dropped significantly. which DAP
income 907 million yuan, down 27.91%; PVC income of 541 million yuan,
down 26.12%; pentaerythritol income 299 million yuan, down 19.29%. The
decline in product revenue was mainly because of falling demand led to
sales difficulties, lower prices. Overall, the company's overall
revenue growth has benefited from the combined chemical and gas head
of urea production project. If removing the contribution of the Joint
Chemical, the company revenues have fallen sharply in the first half,
At the same time a loss. first-half gross profit margin was 16.24%,
down 4.96 percentage points. from the chain perspective, the company's
fourth quarter gross profit margin last year lows more substantial
recovery. from all varieties, the first half of company Product gross
margins were down there are different ranges. benefit from the
low-cost gas head Urea Project (joint chemical project) into
production, the company urea product gross margins remained stable. in
the first half, the company gross margin was 26.20% urea, an only a
slight decrease of 1.63 percentage points. "
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Interpretation is as follows:
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Of urea fertilizer should be divided into two main raw materials PVC
three sulfur coal, natural gas phosphate calcium carbide
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First, the company sits a large phosphate, diammonium phosphate
fertilizer prices in a strong recovery in the first (the last drop is
the main cause of drag on performance)
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Compared with urea and potash, diammonium prices stood out this fall.
Industry is expected, the domestic phosphate fertilizer will continue
to trend steadily. September Hubei Yihua rumors diammonium full
capacity, the company ex-factory price of diammonium 2100 yuan / ton.
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November Latest Quotes: sulfur prices continue steady rise. Trends in
the fourth quarter of higher sulfur supply to the negotiations, the
international firm quotations from suppliers. The recent increase in
volume of domestic port spot market price rose, traders and plant
imports will increase. Fertilizer dealer that the timely procurement
of diammonium is a good market opportunity, so the Northwest,
Northeast sales dealers in the autumn after the end of the season to
begin diammonium reserves. (Northeast is the large amount of
diammonium)
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Phosphorus and sulfur as saying in 2007 rose, driven by China's
fertilizer business profits dash, rapid changes from the importing
country exporters, excess capacity, farmers hindered by weaker demand
for high value, export followed also blocked, in vain to sell high
sulfur cheaper foreigners. And then did not last long, sulfur and
phosphorus fell, the high sulfur manufacturers become stuck acquired
family, until recently a little loose. "With the gradual
pre-digested high-priced stocks of sulfur, phosphorus is also getting
better and better profitability." Advised of the earnings report
that describes this tragic episode in history. September until
November, is still continuing in the rally of diammonium should
finally give back the technology a chance.
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Second, the nitrogen recovery in prices has not yet benefited from the
promotion policy, but the company holding 51% of the Erdos Joint
Chemical 60 million tons of synthetic ammonia, 104 tons of urea
production project was completed by the end of 2008 (preferably the
original capacity of 65 million tons of headquarters / year of urea)
The company nearly doubled total capacity of urea (urea, the new plant
cost only 1200, 1500 are ex-factory price), driving revenue growth
69.34% urea. The price of urea dropped 08 1900 ~ 2000 yuan / ton, in
2009 about 1500, the company in the past the cost of 1800 yuan / ton.
The industry average cost of 2000, the Joint Chemical Engineering
contract for five-year supply security, its use of natural gas is only
0.85 yuan / cubic meter (5-year gas supply contract), corresponding to
the urea cost 1,200 yuan / ton or less, far below the industry average
cost. This except, should a loss of mid-year report, this included,
the appropriate holding stability of mid-year report. Resource prices
in the new market, the benefit is the first coal-head gas business,
refers to this meaning.
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November Latest Quotes: mixed, Hebei, Henan, Shandong, Jiangsu, Anhui
region gains slowed down, most manufacturers now offer factory
insisted on 1,600 yuan / ton, up and down, but because the price
accepted by the market conditions are not good, so local a slight
decline in the actual transaction price region, the current trading
price of the mainstream in these areas 1550-1580 yuan / ton, 1,600
yuan / ton in the price of transactions is small. Northeast, northwest
and southwest China lags behind the market reflected this week, there
are still manufacturers in regulated prices, the current mainstream
prices in Northeast 1,700 yuan / ton from top to bottom, Northwest
Territories in 1620-1650 than in Shaanxi offer yuan / ton, the other
provinces in the mainstream Price 1,600 yuan / ton from top to bottom.
Southwest offer a big gap between high-low, low prices of about 1580
yuan / ton, high-end to 1750 yuan / ton, the mainstream price of about
1650 yuan / ton from top to bottom.
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The joint chemical sweater belonged to the famous group of the year
halfway hands should be in the move of the market Shengzhuan Yi, to
help foot the bill, but 09 sweaters profiteers should be made a
scapegoat of the three mid-year report and quarterly reports show the
new project in Inner Mongolia to help with the cost advantage of
natural gas should be of the losses this sufficient to refute rumors
that year, however Erdos Group sold the inside story behind the fat in
people inevitably move conjecture
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Third, in addition to P outside the 2008 crash also caused the price
of PVC performance drag, loss of nearly 08 companies 1,000 yuan per
ton of PVC.
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Coal and gas field, holding the year when the announcement that the
Ordos: 1, Joint Chemical with the more obvious advantages in
resources. China's second large-scale oil and gas fields - Gerry Ordos
gas field has begun development of the Soviet Union, for the project
in the amount and price of gas to provide a guarantee for the project
in the oil has been configured with 700 million cubic meters of
natural gas to meet the needs of the company's production and
development . Supporting the construction of water resources in the
Joint Chemical Engineering has been completed, has been the national
10 million cubic meters / year of water rights in the Yellow River
water replacement indicators. In addition, China Erdos coal Coal is
one of the most concentrated, has proven reserves of 149.6 billion
tons, accounting for the country has one-sixth of proven reserves, the
next step for the company to develop coal chemical industry in Inner
Mongolia to provide adequate resources and support . 2, the Joint
Chemical has good traffic advantage. Etuoke Banner in Ordos City Joint
Chemical board Jingzhen, 230KM long line of Mongolia in 2007 natural
gas pipeline through the south from the gas field, China's second
largest gas field Suge Li, direct supply of large chemical fertilizer
project combined chemical 60/104; 385KM East Uzbekistan Railway Double
Track (Ordos City to Wuhai City) will be completed and put into
operation in 2008, and Beijing Blue Line (Beijing to Lanzhou) cross in
Wuhai; In addition, the board Jingzhen to Ordos City Expressway
Completed in 2008, Transportation, Logistics Corridor will open up
across the board in 2008, the Joint Chemical to provide adequate
transport security. 3, the Joint Chemical has a certain energy saving
advantages. Joint Chemical large chemical fertilizer project's main
raw material for natural gas, is a high quality clean energy, using
natural gas instead of coal and oil, C, N, S oxides and dust emissions
are greatly reduced, and the introduction of a global project 10
patented the most advanced technology, the entire plant operation will
be in the national "energy saving" advanced.
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Tomorrow, this year bought technology shares in the West under the
bankruptcy Neimenghaiji water chlor-alkali industry, whichever is 7
cheap electric quarry resources. Gas price rise in international oil
prices trend, PVC prices have also hope to benefit, should be based on
a continuous downturn to make the acquisition of positive Hegyi,
holding Erdos Joint Chemical, investment Neimengwuhai three items of
new major investment projects, it now appears, have successfully
betting, copying the economic meaning of the end. June 2009 overall
acquisition Hegyi, Hegyi current annual production capacity of the
chlor-alkali (a) 15 tons of calcium carbide, 60,000 tons of caustic
soda and 60,000 tons of PVC. After the acquisition, Hubei Yihua also
received calcium carbide mining rights to the local 7 total reserves
of 6 million tons, annual output is 208 tons. High Street analysts
that the company has the calcium carbide (PVC raw materials) within
its own capacity in the long term will help to reduce the production
cost of PVC. September 10 Board of Directors announced its
wholly-owned subsidiary through Inner Mongolia Yihua Chemical Industry
Co., Ltd. invested in Wuhai project annual output of 30 tons of PVC
motion. The construction period is one year, required a total
investment of RMB 1.4 billion, intends to use its own funds and bank
loans to solve. In addition to bridging Hegyi calcium carbide, the
Wuhai area is also rich in limestone and coke, so the main raw
materials are in the procurement of the project site or the
surrounding area, the cost is relatively low.
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Advised of the above information, if not lies, then outlined a
comprehensive road map for the reform of vivid: drive from the huge
profits the blind expansion of production capacity, to the integration
of resources, industrial chain integration, to the cost and price
advantages of scale, poor to keep in Gold and Sand superior process of
survival. (Just to survive, small-name companies collapse, the growth
of space on the larger.) This business is worth a good long hold.
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Unit 07, Daniel, after being abandoned in the 08. The third quarter of
this year funds were crowding together once again become popular.

The previous high in August 4th 18.80
Recently, this has been the key contention point 9 days, observed a
bargaining chip lock plate is extremely good, not decent sell-off,
short-term upside trend not blocked, should belong to Xichou platform.
Proposes a focus on effective and timely follow-up after breaking.
(Note that generally exceeded the amount of forms needed to follow up
with we go, but the shares do not have to look at the amount.)
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