The potash company came out of the swamp

This evening, two potash companies issued performance forecasts, net profits have increased significantly, coupled with the previous news of *ST Salt Lake, it can be said that the performance of the entire sector is constantly improving.

This evening, Yakalium International (000893) announced that it expects to achieve a net profit of 480 million yuan to 670 million yuan last year, an increase of 4534% - 6369% year-on-year. Zangge Holdings (000408) expects to achieve a net profit of 390 million yuan to 430 million yuan in the first half of the year, a year-on-year turnaround.

Yakalium International said that the reason for the increase in profitability was the year-on-year increase in the operating income of the potash fertilizer business, while the company had divested the trading and shipping business and no longer had a negative impact on the company's net profit. During the Reporting Period, the amount of non-recurring profit and loss is expected to be between $444 million and $646 million, which is due to the increase in the Company's profit for the current period due to the corresponding compensation for litigation cases.

The improvement in the performance of Zangge Holdings is due to the increase in the sales price of the subsidiary Zangge Potash Fertilizer potassium chloride compared with the same period of the previous year, and the operating income and profit increased compared with the same period of the previous year; the sales volume and sales price of lithium carbonate in the company's second-level subsidiary, Zangge Lithium, increased significantly compared with the same period last year. The company's long-term equity investment recognized investment income of 210 million yuan (including the return of the expected credit loss of Tibet Julong Copper).

The performance growth of Yakalium International and Zangge Holdings has non-main business reasons, the former has a large amount of non-recurring profit and loss, and the latter is a long-term equity investment income.

In contrast, *ST Salt Lake has a higher net profit content. *ST Salt Lake announced on the evening of July 6 that it expects to achieve a net profit of 2 billion yuan to 2.2 billion yuan in the first half of the year, an increase of 44.69% to 59.15% year-on-year; basic earnings per share earnings of 0.3681 yuan to 0.4049 yuan. The main reason for the change in performance is that the company's main business potassium chloride production and sales were stable during the reporting period, and some units of The 20,000-ton project of Lanke Lithium have been put into operation, and the output of lithium carbonate has increased compared with the same period last year. Affected by the increase in commodity prices, the price of potassium chloride and lithium carbonate products increased during the reporting period, and the company's performance improved.

In fact, the performance improvement is mainly due to the sharp rise in potash prices, potash prices from this year's Spring Festival, began to rise, until now the rally is still unsustained, at present, * ST Salt Lake quotation has been increased to 2770 yuan / ton, port prices have reached 4000 yuan / ton. In addition, the tonnage price of potassium carbonate has risen from less than 40,000 yuan last year to more than 80,000 yuan now.

In contrast, the current production capacity of Yakalium International is still relatively small, and it is still in the investment period, some shareholders still have the intention of reducing their holdings, and Zangge Holdings is still in the stage of suspension and maintenance, which has affected the release of profits.

It is worth noting that in recent years, the price of potash fertilizer has not been high, potash companies have not lived an easy life, potash plate companies have suffered huge losses, suffered performance decline, has become the norm.

With the rise in potash prices this year, the industry has finally ushered in a long-lost boom cycle, this wave of rise for the global phenomenon, especially overseas growth is higher than the domestic, due to the relatively high overseas prices, now the port to come less cargo, affecting the entire market sentiment. On the other hand, due to the continuous low price of potash fertilizer, the enthusiasm for domestic potash fertilizer expansion has been frustrated, and domestic potash fertilizer production is likely to decline this year.

With the improvement of performance, the stock price has also ushered in a turnaround, such as the stock price of Zangge Holdings, which has risen 5.7 times compared with last year's low.