The Big Three made a net profit of 4 billion yuan in the first quarter!

Continuing the boom cycle of last year, the performance of the three domestic phosphorus chemical giants increased significantly in the first quarter, and the cumulative net profit will be at most 4 billion yuan, a year-on-year increase of 249.
91% compared with 1.
142 billion yuan in the same period of the previous year
.

On the evening of April 14, Yuntianhua announced that the company's operating income in the first quarter was about 14.
962 billion yuan, a year-on-year increase of 13.
28%
.
The net profit attributable to shareholders of the listed company was about 1.
646 billion yuan, a year-on-year increase of 186.
15%
.
Recently, Xingfa Group released an announcement of pre-increase in performance, saying that in the first quarter, the company is expected to achieve a net profit of 1.
7 billion yuan, a year-on-year increase of 379.
35%
.
Hubei Yihua's performance forecast stated that it is expected to achieve a net profit of 580 million to 650 million yuan, a year-on-year increase of 173.
17%-206.
14%
.

Last week, the Ministry of Industry and Information Technology and other six departments jointly issued the "Guiding Opinions on Promoting the High-quality Development of the Petrochemical and Chemical Industry during the 14th Five-Year Plan", which proposed to strictly control the new production capacity of oil refining, ammonium phosphate, calcium carbide, yellow phosphorus and other industries
.
Affected by this, the phosphorus chemical sector led the gains in the two cities, and Liuguo Chemical, Xingfa Group, Hubei Yihua, etc.
all saw continuous gains
.
Looking at the market outlook, the supply side is limited, downstream demand increases, and prices are supported to rise, and the phosphorous chemical sector will maintain a high degree of prosperity
.

From the perspective of the industrial chain, the phosphorus chemical industry starts from phosphate rock, the midstream is yellow phosphorus, phosphoric acid and phosphate, and the downstream is fertilizers, pesticides and industrial products
.

Yellow phosphorus is an important chemical raw material.
Phosphate ore needs electricity to obtain yellow phosphorus through high temperature.
The power consumption per ton is about 15,000 kWh.
Therefore, the price of phosphate rock and the price of electricity determine the price of yellow phosphorus
.
China's phosphate rock began to rise around March last year.
According to commodity data monitoring, the average price of yellow phosphorus from January 1, 2021 was 16,200 yuan / ton, and the average price by the end of December 2021 was 41,700 yuan / ton.
, the price increase during the year was 157.
72%
.

Affected by this, listed phosphorus companies made a lot of money last year
.

According to Yuntianhua's 2021 annual report, the main revenue is 63.
249 billion yuan, an increase of 21.
37% over the previous year, and the net profit is 3.
642 billion yuan, an increase of 12 times over the previous year; at the same time, it is expected that the net profit attributable to shareholders of listed companies in the first quarter of this year will increase year-on-year.
nearly 2 times
.

Xingfa Group's latest performance report shows that the company achieved a net profit of about 4.
2 billion yuan last year, an increase of nearly 6 times over the previous year; at the same time, it is expected that the net profit attributable to shareholders of listed companies in the first quarter of this year has increased by nearly 4 times year-on-year
.

Chuanheng Co.
, Ltd.
also disclosed a performance pre-increase announcement.
It is expected that the net profit in 2021 will increase by more than 1.
2 times compared with the previous year; at the same time, it is expected that the net profit attributable to shareholders of listed companies in the first quarter of this year will increase by nearly 2 times year-on-year
.

Longzhong information industry analyst Ren Hairong believes that the current domestic phosphate rock price is relatively low, while the international phosphate rock price is relatively high, and the future import volume of phosphate rock will increase
.
The International Fertilizer Industry Association predicts that by 2024, the production capacity of phosphate fertilizers will reach 53.
34 million tons
.
The data shows that China mainly imports high-purity phosphate rock from Morocco.
The current FOB price is 235-245 US dollars / ton, and the price of phosphate rock per ton with freight has exceeded 1,600 yuan
.
Compared with the two, domestic phosphate rock prices still have room to rise
.

The increase in the price of phosphate rock is undoubtedly a great benefit for listed companies with phosphate rock resources
.
At present, domestic phosphate rock resources are mostly controlled by large-scale phosphorus chemical enterprises
.
Xingfa Group has phosphate rock reserves of about 1.
2 billion tons, Yuntianhua phosphate rock reserves of more than 1 billion tons, Chuanheng Co.
, Ltd.
has 160 million tons of phosphate rock reserves, Hubei Yihua phosphate rock reserves of 150 million tons, ST Chengxing phosphate rock reserves Reserves of 130 million tons, etc.
, they will get dividends
.

It is learned from the market that the current domestic supply of yellow phosphorus is limited, and the operating rates of yellow phosphorus enterprises in Sichuan and Guizhou fell by 6% and 17% respectively in March
.
Phosphate fertilizer is an important downstream of phosphate rock, and the price increase of phosphate rock has a great impact on the phosphate fertilizer industry
.
The latest price data from the business agency shows that as of April 12, the domestic price of monoammonium phosphate is 3400-3760 yuan/ton, and diammonium phosphate is 3500-3900 yuan/ton
.
According to industry insiders, according to the current cost price of phosphate rock and sulfuric acid, phosphate fertilizer production is at a loss, especially diammonium phosphate.
Fertilizer enterprises without low-priced phosphate rock sources lose nearly 900 yuan per ton of production
.
If the price of phosphate rock continues to rise and is in line with international standards, then domestic phosphate fertilizer companies will definitely not be able to bear it
.
At the same time, with the intensification of the overseas energy crisis and the conflict between Russia and Ukraine leading to sanctions against Russia by Europe and the United States and other countries, its production and exports have been greatly affected
.

At the same time, judging from the current development trend of lithium iron phosphate batteries and new energy vehicles, the future development of phosphorus chemical industry is "the one who obtains phosphate rock wins the world"
.
Qi Haishen, president of Beijing Teyi Sunshine New Energy, said that the development of lithium iron phosphate batteries is likely to more than double the new output value of the current phosphorus chemical industry
.
Therefore, the limited supply side and the spillover of downstream demand will inevitably support the rise in the price of yellow phosphorus, and phosphorus companies will also get a share of it
.