Category: Money Tips Date: 2007-06-27
Source: New Era Securities Author: White Jiankang
Soda ash as a basic chemical raw materials, occupies an important position in the national economy, known as "the mother of Chemical Industry", the industry significant signs of recovery. In recent years, due to environmental reasons, the developed countries continue to close the soda ash plant, while China has the technology, capital, resources, labor costs are lower and many other advantages, at an early stage adjustment of global soda ash industry is expected to become the world's soda ash industry in the production and export base. Deserves attention is that the price of soda ash began to rise, the cost down! Since the beginning of 2006, soda ash prices have continued to decline, but from the beginning in May, soda ash prices rebounded significantly stabilized, East China market, soda ash (99%) prices from early May to mid-May to stabilize at 1550 yuan / ton. As of early June, soda ash prices are still climbing steadily in the show. From a cost point of view, salt is the main raw material for manufacture of soda ash, soda ash consumption of 1.6 tons per ton of crude salt, salt in the soda ash production costs account for 40-50% or so. From August 2005 to the start of salt prices began to come down this year, a quarter of the price has dropped to 260 yuan / ton, as of early June, crude salt to exfactory sales prices have dropped to about 180 yuan / ton, the production cost of soda ash is being continued to decline. By product prices and raw material costs, a comprehensive analysis showed that the soda ash industry is currently in the process of gradual recovery in the profitability of the enterprises are also being gradually improved and enhanced. Among them, as the country's chemical industry, one of the eight G Soda alkali industry (600,229) not only will benefit from the recovery of soda ash industry, and its will directly benefit 100 billion in petrochemical projects, the late great potential!
Company is China's soda ash industry, one of the seven leading enterprises, as a major shareholder in Qingdao Gulf Group, completed a time-consuming nearly three years of restructuring, the company has as its core business, will be further support for the Gulf group. Sinopec 10 million tons after the major oil refinery project settled in Qingdao, Qingdao City, then put the establishment of petrochemical-based planning, a major shareholder in the Gulf Group and Sinopec Qingdao Refining and Chemical Company, Qingdao, signed on the two sides established strategic cooperative relations between the industry chain memorandum. Under the agreement, Qingdao Refining and Chemical Company refinery process, subject to conditions, preferential purchasing Qingdao Gulf Group, caustic soda production, methanol and other chemical products, and provide the necessary types and indicators for oil refining auxiliaries to give priority to development and production from Qingdao Gulf Group. The G alkali industry is the biggest beneficiaries of this agreement, and its products found a market, soda ash, more importantly, the company will result, and 10 million tons refinery project to achieve major butt. Company can use the large oil refining project in Qingdao, using coal and big oil refinery by-product of burning high-sulfur petroleum coke mixed with the creative process, as well as gas-making coal-water slurry, etc. present, the most advanced technology, compared to previously used fixed-bed and high-quality lump coal cost greatly reduced, not generate a large number of cinder, while energy consumption is also greatly reduced.
In addition, the Company will be launched ", transformation of Hou's circular economy" projects to achieve coal chemical industry! It is understood that the project is expected to invest 1.56 billion yuan has been accreditation by the Expert Group is expected to commence during the year, duration of 33 months. Transformation is complete, Qingdao Soda Ash Industrial will increase by 10 million tons of soda ash and 50 million tons of ammonium chloride output. The project will enable the company's industrial landscape to the coal chemical industry, petroleum chemical industry, fine chemical industry rapidly expanded. To change the blue base is currently only in the salt industry as the pillar of the disadvantages of a single product structure. It is estimated that these projects are all put into operation, the company's sales revenue will add 10.4 billion, is now nearly five times, add taxes of about 1.453 billion yuan. The company's future performance is fairly extensive room for growth. At the same time, the company through asset stripping of the replacement of pesticides is not strong profitable assets, and the Gulf Group and affiliated companies owned 700 acres of land-use rights-phase replacement. In terms of financial data in 2005 estimated that if the company only to set out the asset classes of pesticides can be brought more than 50% net profit growth, combined with the company gradually put into operation a number of new projects, which will become the company's new profit growth point. In addition the company has also invested in China Everbright Bank, CITIC Wantong and other financial businesses, its future lay the foundation for diversified development.
As a result of industry recovery is expected to bottom out and the performance of the chemical unit, the unit is currently only 3 yuan to climb to the absolute price is not high, as the privatization of the petrochemical and coal chemical further upsurge was set off in hot spots come and go, its stock price severely oversold short-term is expected out of the rapid outbreak of market, can take an active interest.
