Are these companies doing business in Ukraine okay?
Tensions between Russia and Ukraine continue. According to CCTV news, in the early morning of February 24, local time, Russian President Vladimir Putin authorized military operations in Donbass. On February 25, another explosion occurred in Kiev, the capital of Ukraine. Russian tanks had reached the outskirts of Kiev, and the Ukrainians blew up a bridge near Kiev. At present, Russia and Ukraine are fighting fiercely.
The sudden change in the situation in Ukraine has touched the nerves of the global capital market. Looking at A-share listed companies, many companies have related business layouts or product sales in Ukraine, especially in wind power, semiconductor and agriculture. Are these companies affected?
Wind power: Operating projects are basically normal
Ukraine is rich in wind power resources, which has attracted a number of domestic wind power companies to enter the Ukrainian market to invest in related projects, goldwind, China Power Construction, Longyuan Power, Taisheng Wind Energy and state grid are among them. So far, many of the above-mentioned companies have responded.
On February 25, a relevant person from the Secretary Office of the Board of Directors of China Power Construction said that the company has a project in Ukraine, but the project has not yet started, so the overall impact is very small. In April 2021, China Power Construction and Ukraine Wind Farm Co., Ltd. signed a contract for an 800 MW wind power project in the Nikorsk and Mangus regions of Ukraine for a contract amount of US$999 million (about RMB 6.716 billion).
Chengzhi shares replied that the impact of Russian-Ukrainian tensions on the global economy is currently unpredictable. The clean energy business, which accounts for a large proportion of the company's main business, is affected by multiple factors such as the macroeconomic situation, international oil price fluctuations, bulk product prices, market supply and demand relations and industrial policies, although the company has a part of the foreign business, it is still mainly domestic; at present, the company has not been directly affected by the tension between Russia and Ukraine, and the production and operation are normal.
Wind turbine equipment supplier Taisheng Wind Energy responded that the company's orders sold to Ukraine are subject to FCA and FAS delivery at domestic terminals, which are basically fulfilled as planned and are currently nearing the end. The counterparties of the relevant orders are well-known domestic and foreign machine manufacturers, with many projects, strong solvency, good historical credit, and maintain good communication with the company, and there is no sign of default. Up to now, the situation in Ukraine has no major impact on its production and operation activities, and it is continuing to pay attention to the local situation and actively prevent and control possible risks. It is reported that Taisheng Wind Energy is one of the two fan tower manufacturers designated by The Danish wind turbine manufacturer Vestas in China. In November 2021, Taisheng Wind Energy shipped onshore wind power products for Vestas. These products were sent to the latter's wind power projects in Ukraine and Australia, with a price of 113 million yuan, accounting for 93.03% of the book amount of Taisheng Wind Energy at the end of the third quarter of that year.
On February 24, Longyuan Power, the "first share of China's new energy", exclusively responded to the reporter of China Securities News that the production and operation of the Ukrainian wind power project are normal. It is reported that Longyuan Power has a wind power project in Ukraine, the installed capacity is not large, 76.5MW, accounting for three-thousandths of the company's total installed wind power capacity, and the current production and operation are normal.
According to the Financial Associated Press, Zhongli Group responded that after verification, the company did not operate photovoltaic business in Ukraine, and the original wholly-owned overseas subsidiary was also transferred, so it was not affected by the current situation.
Semiconductors: What is the supply of neon gas?
Ukraine is the world's semiconductor raw material gas supply country, including neon, helium, krypton, krypton and other gases, of which neon gas is supplied by Ukraine nearly 70% of the world's production, supply blocked or will form a phased promotion of the rise in the cost of the industrial chain. When Russia took control of the Crimean Peninsula in 2014, the price of neon gas soared more than 10 times, and the "lessons learned" caused widespread concern in the market.
Judging from the responses of relevant listed companies, localization has given the market a reassuring pill. For example, Jinhong Gas said that the company's neon gas business accounts for a low proportion of the main business, and the Russian-Ukrainian incident has less impact on the company as a whole.
Huate Gas pointed out that the escalation of the situation in Russia and Ukraine will not have a great impact on the company, and in rare gases, the company has domestic suppliers.
Kemet gas said that the price of neon gas has recently increased. The company's Yueyang Electronics Special Rare Gas Project has been officially put into operation in July 2020, which can produce helium, neon, helium and hydrogen and other products.
Agriculture: There are other alternatives
As the world's largest producer and exporter of oil sunflower and sunflower oil, Ukraine has also become an important region for the layout of many A-share agricultural, grain and oil companies.
On March 16, 2021, Suken Nongfa officially announced that it intends to invest US$5 million to set up a wholly-owned subsidiary in Ukraine to create an integrated business platform integrating grain planting, trade logistics, processing and warehousing, investment, and public services. By January 2022, all approval processes in the domestic region of the project have been completed, and overseas related work has not yet been carried out. Due to the political instability in the Ukrainian region, the company's project is actually in the suspension stage.
Zhengbang Technology said that at present, the escalation of the situation in Russia and Ukraine has less impact on the raw material procurement business of The Ukrainian Sun Company. Although the cost performance of Umai is relatively high, if the subsequent procurement of Umai is affected, the possibility of choosing raw materials such as Australian wheat and Farmai is not ruled out for substitution.
In addition, listed companies such as Bakken Energy, Dabeinong, and The Institute of Research have also responded on the investor interaction platform, emphasizing that the current situation in Russia and Ukraine has no special impact on the company's business.
Industrial Securities believes that in the short term, before the ceasefire of military conflicts, the risk aversion in the global market is still inertia, which can be based on the defense of safe-haven assets, including natural gas, oil, military industry, gold, US bonds, us dollars and so on. In the medium and long term, allocate China's high-quality assets at a low price. At present, the high-quality assets of A-shares and Hong Kong stocks do not have systemic risks from the valuation situation. U.S. stocks, in addition to the short-term panic caused by the war, still have to be wary of the impact of medium-term risks such as high inflation and policy contraction, and the next observation window is the March interest rate meeting.
For investors' information only and does not constitute investment advice
