"Glyphosate" into a cash cow

This is a herbicide, but it has become a booster for the performance of listed companies. Business statistics show that the price of glyphosate has risen by more than 10% since the first half of this year. In this case, the performance of a number of listed companies increased significantly in the first half of the year, with Sanonda A and Jiangshan shares increasing by 420%-470% and 2191% respectively.

The related company has a "buzz up" sound. Currently, there are a number of listed companies related to glyphosate, including Jiangshan, Xin'an and Sanonda. In the first half of this year, the performance of these companies rose.

For example, Sanonda A, the company expects to make a profit of 125 million yuan to 1.37 billion yuan in the first half of the year, a year-on-year increase of 420% to 470%; Xinan shares will turn a profitable deficit, from an annual loss of 2274.66 million yuan in the first half of last year to the first half of this year. The estimated profit is 230 million yuan.

Jiangshan shares is even called "pre-increase the king," the company said that the first half of the net profit of 130 million yuan, compared with only 5.676 million yuan in the same period last year, an increase of 2191%.

At the same time, although Hing Fat Group's performance in the first half fell by nearly 50%, its investment in glyphosate has become a bright spot for the company's performance. According to the company, Hubei Taisheng Chemical Co., Ltd., which is a shareholder, has a relatively good operating profit. In the first half of the year, the investment in the glyphosate project achieved a profit of 5,206.49 million yuan, a year-on-year increase of 799.98%.

Good performance caused the market to pursue. The data shows that the price of Sanonda A shares rose from 5.13 yuan/share at the beginning of the year to 10.05 yuan/share at the close of last Friday, nearly doubling; Xinan shares rose from 13.99 yuan/share to 43.92 yuan/share on Friday. Increase more than 3 times.

Glyphosate price boosters The good performance of the above companies is closely related to the increase in the price of glyphosate. Sanonda A said that the company’s production and sales of its main products have increased significantly compared with the same period of last year, and sales prices have also increased. It is reported that glyphosate is one of the company's main products.

How hard is glyphosate to rise in the first half? Business statistics show that the price of glyphosate was 34416 yuan/ton at the beginning of the year, and by July 25, the price had risen to 38,383 yuan/ton, an increase of 3,967 yuan/ton, or 11.5%.

According to the 2012 annual report of Sanonda A, the company has a 25,000-ton/year glyphosate production facility. If it is produced at full capacity, it will increase by 3,967 yuan per ton, which means that the company will have about 50 million more profits within half a year.

Why is the glyphosate price soaring?

On the one hand is the increase in terminal demand. March and April each year is the peak demand for pesticides, and export orders are also increasing in the first half of the year. In addition, since the second half of last year, the glyphosate market has been in short supply and prices have risen; in addition, the industry has recently faced environmental pressure and many small and medium-sized enterprises are under construction. Limits have intensified supply tensions.

For the price trend of glyphosate in the second half of this year, September-October is the peak season of glyphosate, and its momentum of continued price increase exists. As the South American season approaches, purchases in Brazil and Argentina increase, and glyphosate supply will be tight. In the future, the price of glyphosate will continue to rise.