Hubei Yihua The third quarterly company officials about future market direction as follows: ? "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. " ? Companies and highlights: ? "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. " ? ? Interpretation is as follows: ? ? Of urea fertilizer should be divided into two main raw materials PVC three sulfur coal, natural gas phosphate calcium carbide ? 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) ? 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. ? 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) ? 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. ? 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. ? 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. ? 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 ? 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. ? 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. ? 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. ? 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. ? 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.) ?