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Phosphorus is a very important chemical raw materials, and it is extracted from phosphate ore, the formation of the so-called phosphorus chemical industry, in our country's phosphate ore reserves are very rich, according to the proven reserves of up to 9.86 billion tons, ranking third in the world, but in china, only the reserves of Yun Guichuan accounted for 74.5% of the country, the current price of yellow phosphorus has risen rapidly, as of now, the price of yellow phosphorus rose by more than 41.18% year-on-year at the end of the first quarter.
Yellow phosphorus price trend image source business agency
As can be seen from the figure, the price of yellow phosphorus has been running smoothly from the end of February to the beginning of May, and since the end of May, the price of yellow phosphorus has risen rapidly, the reason for which the author believes mainly stems from several aspects:
First: we mentioned in the early stage of in-depth clean energy, the entire Yunnan province of the power supply structure, hydropower accounted for a large proportion, due to the current drought, the reservoir has a more serious drought, resulting in a sharp decline in hydropower power generation, so that the original power supply will inevitably appear shortfall, so the power grid has taken measures for the major electricity users of large enterprises to stagger the peak of electricity, of which, aluminum, yellow phosphorus, cement, steel and other high-energy-consuming enterprises are forced to stop production and reduce production, and Yunnan is the main production area of phosphate ore. So there was a brief supply-demand tension.
Second: from the perspective of phosphate ore reserves, only the reserves in Yunnan occupy more than 60% of the country's reserves, but from phosphate ore to yellow phosphorus processing will consume a lot of electricity, under the influence of power rationing, the operating rate of production enterprises has dropped to a low point, and from the perspective of enterprise inventory, there has also been a significant reduction, so since late May, yellow phosphorus has a temporary supply shortage, so in late May the price of yellow phosphorus has risen sharply.
Xingfa Group image source company official website
The company is located in hubei of the five major domestic phosphate ore resources, after years of development, opened up a complete industrial chain with resources as the source, phosphorus chemical industry as the mainstay, and industrial chain supporting as the supplement, has been one of the largest fine phosphorus chemical enterprises in China, and is also one of the top 500 domestic listed companies.
Ore mining
The cornerstone of the phosphorus chemical industry is phosphate ore, which is also the most basic raw material in all phosphorus chemicals, the company is located in Hubei, one of the five major phosphate ore resources in the country, the reserves of phosphate ore are as high as 446 million tons, and the annual mining capacity is 4.95 million tons, in addition to which silicon ore is also involved.
Hydroelectric power generation
The company's own hydropower stations are as high as 32, mainly distributed in nanyang river, Gufu river, Gaolan river and other waters, the total installed capacity of up to 177,500 kilowatts, this is the company's great advantage, because in the power structure, the cost of hydropower is the lowest, which gives the company to build a relatively low cost of electricity in the production process, and can ensure sufficient power supply, from the perspective of carbon neutrality, or very environmentally friendly.
Chemical industry
In the field of phosphorus chemical industry, covering 15 series of 591 varieties from food grade to industrial grade, it belongs to the most abundant manufacturers of product pipelines in the domestic phosphorus chemical industry, and the application field covers agriculture, construction, food, automotive, chemical, electronics and other industries.
From the main business composition, phosphate ore revenue of 640 million, gross profit margin of 43.45%, yellow phosphorus and fine phosphorus products, revenue of 2.851 billion, gross profit margin of 22.47%, silicone DMC revenue of 2.231 billion, gross profit of 28.16%, glyphosate and by-products revenue of 4.386 billion, gross profit margin of 18.98%, electronic chemistry 129 million, gross profit margin of 31.49%, fertilizer revenue of 1.585 billion, gross profit margin of 7.85%, trade revenue of 5.575 billion, gross profit margin of 2.38%, Among them, phosphate ore, silicone, and glyphosate have achieved positive growth of more than 2 digits.
Competitive advantage in the market
From the perspective of resource reserves, the phosphate ore reserves are as high as 446 million tons, the annual output is 4.95 million tons, and the new planning of 2 million tons of production capacity, from the perspective of mining technology, the company successfully broke the world-class problem of thick and gentle inclined phosphate ore body mining under complex geological conditions, successfully improved mining efficiency, and can effectively improve economic benefits.
From the perspective of yellow phosphorus, which has risen sharply due to the impact of power curtailment in Yunnan in late May, the company currently has a production capacity of 160,000 tons of yellow phosphorus, 189,000 tons of fine phosphate, the most abundant manufacturer in the domestic fine phosphorus field product pipeline, and also won two firsts, sodium hexametaphosphate production capacity in the world, sodium tripolyphosphate production capacity in china first.
The company's glyphosate production capacity of 180,000 tons, and its own 100,000 tons of glycine production capacity, from the production process and technology point of view, are the domestic leading, silicone DMC production capacity of 360,000 tons, in the field of very advantageous cost control advantages, industry-leading, in the field of fertilizers, the company has ammonium phosphate production capacity of 600,000 tons, according to the company's planned production capacity of up to 1 million tons.
Segments that are expected to erupt in the future
The author believes that the company's future very important development route is derived from wet electronic grade chemicals, because it is an indispensable basic chemical raw material in the integrated circuit industry, panels and solar cells and other fields, and before, these were all monopolized by overseas manufacturers, but in recent years, with the card neck events have occurred repeatedly, the development pattern of the domestic semiconductor industry has completely changed, domestic substitution and independent controllability are also gradually reflected, of which the localization of wet electronic chemicals ushered in development opportunities.
Subsidiary Xingfu Electronics is the company's main force in the field of wet electronic grade chemicals, with 30,000 tons of electronic grade phosphoric acid, 20,000 tons of electronic grade sulfuric acid, 30,000 tons of electronic grade compounding capacity, whether from the capacity scale or production technology process, are international advanced level, and the company successfully broke through the chip with ultra-high purity electronic grade phosphoric acid and high selective etching liquid key technology, and successfully entered the supplier directory of well-known semiconductor manufacturers at home and abroad, many of which are like SMIC, UMC, Huahong, Well-known celebrities like Hynix.
From the wet electronic grade chemicals to achieve results, electronic grade phosphoric acid sales increased by as much as 74.71%, and achieved batch exports, electronic grade sulfuric acid sales increased by 124.57% year-on-year, especially pointed out that can be applied to more than 8 inches of wafers, electronic grade etching fluid sales increased by 91.06% year-on-year, in the field of wet electronic grade chemicals The company developed rapidly, semiconductor customers grew significantly, and the company also conformed to the development and adjusted the strategic development direction in a timely manner. Through the construction of 60,000 tons of ultra-high purity electronic chemicals for chips, it is said that in this field, the future is also an industry with huge market expectations for the company, and it is also the growth point of the company's future performance.
The first quarter exceeded expectations
From the first quarter, the company's revenue of 4.47 billion increased by 14.3% year-on-year, net profit of 350 million, net profit increased by 1363.65 year-on-year, slightly exceeding expectations, gross profit margin of 21.8%, an increase of 11.8% year-on-year, net profit margin of 8.6%, profitability improved significantly, of which silicone, glyphosate market prosperity to the company to build a very strong profit support, the complete phosphorus chemical industry chain in cost control, increase efficiency is obvious, the author believes, In the future, the company's obvious growth momentum will inevitably come from the continuous prosperity of wet electronic chemicals, and it is also an important segment to promote the rapid growth of the company's performance in the future.
Disclaimer: The data involved in this article are derived from the company's data disclosure.