Recently, more than 10 listed fertilizer enterprises such as Hualu Hengsheng, Luxi Chemical Industry, Hubei Yihua, Lutianhua, Sichuan Meifeng, Lubei Chemical Industry, Yuntianhua, Hechi Chemical Industry and Salt Lake Stock Company have announced the first three quarters performance forecast or official announcement, but the performance differentiation is obvious. Hualu Hengsheng and Luxi Chemical Industry, the coal-head enterprises in the eastern region with multiple co-production and fertilization, have surged with net profits of more than 2 billion yuan. Although the performance of gas fertilizer enterprises in Southwest China is unsatisfactory, it is not easy to turn losses into profits. Salt Lake Share, located in Qinghai Province, is expected to lose 1.25 billion yuan due to the loss of comprehensive development and utilization of Salt Lake resources.

01

"Qilu Double Stars" has a brilliant performance

According to the announcement, Hualu Hengsheng reached a new high in the first three quarters of this year: 10.849 billion yuan in business income and 2.535 billion yuan in net profit attributable to listed shareholders, up 50%, 198.95% and 1.564 yuan in earnings per share, respectively.

Hualu Hengsheng said that the price of urea, acetic acid and other leading products hit a new high in recent years. The company seized market opportunities, coordinated production and marketing linkage, and revenue increased substantially. In addition, after the company's traditional industrial upgrading project was put into operation in the fourth quarter of last year, the scale benefit was remarkable, the production cost was further reduced, and the profit margin was expanded. It is noteworthy that Hualu Hengsheng has abundant cash flow, with net operating cash flow reaching 3.1 billion yuan in the first three quarters.

The growth rate of performance of Luxi Chemical Industry has been reflected in the past year. In the first three quarters of last year, the net profit of Luxi Chemical Industry was 1.072 billion yuan; in the first three quarters of this year, it is estimated that the profit will range from 2.3 billion yuan to 2.4 billion yuan, an increase of 114.59% to 123.92% over the same period of last year. According to the announcement of Luxi Chemical Industry, in the first three quarters, the company paid close attention to safety, environmental protection and product quality stability; grasped market changes in time, adjusted sales prices flexibly; brought into play the advantages of Park integration, maintained the balance of production and marketing, and achieved better economic benefits.

Industry analysts believe that the performance of "Qilu Double Star" has soared sharply, thanks to the early implementation of structural adjustment by the two enterprises, making the proportion of fertilizer plate in the enterprise's revenue and benefit drop to less than 1/4. Chemical products, especially new chemical materials, have become the leading products of the two enterprises.

02

The industry leader turns losses into profits

In recent years, leading industries such as Yuntianhua and Yihua in Hubei have been sinking and floating in the marsh of loss. This year, with the rise of market prices, the two enterprises turned losses into profits. Yuntianhua's performance advance announcement shows that the first three quarters are expected to earn about 81 million yuan, a sharp increase of 285.53% compared with the same period last year; the amount of non-recurrent gains and losses increased by government subsidies and other items is about 168 million yuan, a decline of 80% compared with the same period last year. After deducting recurring gains and losses, Yuntianhua lost 87 million yuan in the first three quarters, which was 715 million yuan less than the same period last year.

Yuntianhua said that in the first three quarters, the company's main chemical fertilizer product prices rose year-on-year, alleviating the adverse impact of rising raw material prices; at the same time, the price of polyformaldehyde products rose year-on-year, maintaining a high level, and sales gross profit increased year-on-year. In the first half of this year, Yihua realized turning losses into profits. Its net profit attributable to shareholders was 238 million yuan, an increase of 188.43% over the same period last year. According to the company, the revenue of the leading products, such as polyvinyl chloride, caustic soda, urea and diammonium phosphate, increased year-on-year, which increased the company's efficiency; the sale of major assets was completed, the revenue increased and the loss decreased. In fact, the reason why Yihua in Hubei turned its losses into profits this year is to a large extent that it has completed 80.1% equity transfer of Yihua in Xinjiang. In 2017, Yihua's revenue was only 688 million yuan, but its loss was 2.95 billion yuan.

Lutianhua's performance forecast for the first three quarters shows that its profit in the first three quarters is expected to be between 350 million yuan and 450 million yuan, turning losses into profits, with net profit increasing by 393.41% to 477.24% over the same period last year.

Industry insiders believe that Lutianhua turned losses into profits, on the one hand, thanks to the rise in product prices, on the other hand, thanks to the "strong man broken wrist". It is reported that Lutianhua and its subsidiaries have formally entered the reorganization process. During the reorganization period, the interest accrual of loans from financial institutions has been stopped and the financial expenses have been greatly reduced.

03

Potassium Fertilizer Boss is still in a big deficit

More noteworthy is that Salt Lake shares, the leading potash fertilizer industry, are still in a loss marsh. Its first three quarters performance forecast shows that the net profit of shareholders belonging to listed companies is expected to lose 1.150 billion to 1.25 billion yuan from January to September. For the reasons for the loss of performance, Salt Lake shares said that the first reason is that the price of raw materials has risen, a large number of projects under construction at the end of last year have been transformed and the operation load of the plant has been low. The unit production cost of the product is higher, depreciation and financial costs have increased significantly compared with the same period of last year. Second, Haina PVC integration project was affected by safety accidents, and some chemical plants were shut down, with a loss of about 720 million yuan in the reporting period. Third, the comprehensive utilization phase I and II projects are affected by the insufficient supply of natural gas, with a loss of about 440 million yuan in the reporting period.

It is reported that the main business of Salt Lake shares at present is divided into three parts: the development, production and marketing of potassium chloride; the comprehensive development and utilization of Salt Lake resources; and other business including cement production, business chain business and hotel business. Among them, the development, production and sales revenue of potassium chloride is the core part of the company's main business during the reporting period.