With the great
improvement in China's glyphosate market and glyphosate business profitability
in 2012, China's three listed glyphosate companies, namely Zhejiang Wynca
Chemical Industry Group Co., Ltd. (Zhejiang Wynca), Nantong Jiangshan
Agrochemical & Chemicals Co., Ltd. (Nantong Jiangshan) and Anhui Huaxing
Chemical Industry Co., Ltd. (Anhui Huaxing), all witnessed unexpected good
performance in the whole year of 2012, and their net profit growth rate all
exceeded 500% in 2012 compared with 2011 (TABLE 7), especially Anhui Huaxing's
net profit growth rate, according to Glyphsoate
China Monthly Report 1302 issued by CCM I in February.
The net profit
growth rate of Anhui Huaxing seems the highest one among these three listed
companies, but in fact it's the lowest one.
Anhui Huaxing's
expected net profit in 2012 is about USD17.65 million-USD17.96 million
(RMB109.99 million-RMB111.92 million), but thereinto about USD16.87 million
(RMB105.13 million) is the total return from the 100% equity transfer of Anhui
Huaxing's wholly-owned subsidiary—Anhui Huaxing Construction Investment Co.,
Ltd. (Anhui Huaxing Construction).
If the total
return from the 100% equity transfer of Anhui Huaxing Construction is excluded,
the actual expected net profit of Anhui Huaxing is about less than USD1.61
million (RMB10 million) in 2012, and it's actual expected net profit growth
rate is less than 159%. Besides, Zhejiang Wynca and Nantong Jiangshan both
failed to transfer their subsidiaries and didn't obtain any return. Therefore,
the net profit growth rate of Anhui Huaxing is the lowest one among these three
companies.
High
profitability in glyphosate business in 2012 contributes to high expected net
profit in the three companies.
On one hand, the
ex-works price of glyphosate related products increased greatly in 2012 over
2011. Specifically, the average ex-works price of glyphosate technical and PMIDA
was about USD4,630/t and USD2,449/t in 2012, up by about 25.21% and
12.4% respectively over 2011. The average ex-works price of glyphosate
formulations rose a lot in 2012, especially glyphosate 41% IPA and glyphosate
62% IPA. In detail, the average ex-works price of glyphosate 41% IPA,
glyphosate 62% IPA, glyphosate 50% SP and glyphosate 75.7% WSG in 2012 was
about USD2,167/t, USD2,749/t, USD2,585/t, and USD4,030/t, up by 11.84%, 15.35%,
7.78% and 5.42% respectively over 2011 (FIGURE 3).
On the other
hand, the export value of glyphosate produced by these three companies increased
greatly in 2012 over 2011. In detail, the export value of glyphosate produced
by Anhui Huaxing, Nantong Jiangshan and Zhejiang Wynca was about USD20.65
million, USD282.23 million and USD399.77 million in 2012, up by about 14%, 59%
and 23% respectively over 2011 (FIGURE 4).
In fact, these
high expected net profit growth rate figures in 2012 represent the highest ones
in these three listed glyphosate companies since their listing. These figures
not only indicate bad operating performances in these three companies in 2011,
but also reflected their success to swiftly grasp the sales opportunity in the
improved glyphosate market in 2012.
Table Contents of Glyphsoate China Monthly Report 1302:
Anhui
Huaxing's non-public issuing stock plan is approved by China Securities
Regulatory Commission
Nantong
Jiangshan's stock price rises 111.79% in 2012
Monsanto
achieves great operating performance in first quarter of fiscal year 2013
Listed
glyphosate companies' net profit to surge in 2012
Industrial
concentration of Chinese glyphosate keeps increasing in 2012
One
glyphosate registration in Jan. 2013
Glyphosate
prices drop slightly in Feb. 2013
Glyphosate
technical export price decreases slightly in Dec. 2012
Overview
of glyphosate export in 2012
Glyphosate China Monthly Report, a monthly publication
issued by CCM on 20th, will keep track of latest dynamics, hotspots
and competitiveness analysis, and forecasts on market trends of China
CCM is dedicated to market research in
China
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com
No comments:
Post a Comment