Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more ➡
Download
Standard view
Full view
of .
Add note
Save to My Library
Sync to mobile
Look up keyword
Like this
2Activity
×
0 of .
Results for:
No results containing your search query
P. 1
Operating Performance of Four Listed Glyphosate Companies May Improve Further in H2 2012

Operating Performance of Four Listed Glyphosate Companies May Improve Further in H2 2012

Ratings: (0)|Views: 216|Likes:
Published by Clair Lin
Industrial concentration of Chinese glyphosate increases further in H1 2012, and China's top five glyphosate producers' proportion of export volume and value of glyphosate A. I. has increased to 64% and 70% respectively in H1 2012, up 8% and 13% H1 2011.
Industrial concentration of Chinese glyphosate increases further in H1 2012, and China's top five glyphosate producers' proportion of export volume and value of glyphosate A. I. has increased to 64% and 70% respectively in H1 2012, up 8% and 13% H1 2011.

More info:

Published by: Clair Lin on Oct 18, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, DOC, TXT or read online from Scribd
See More
See less

03/29/2013

pdf

text

original

 
Operating performance of four listed glyphosate companies may improve further in H2 2012Summary:
Industrial concentration of Chinese glyphosate increases further in H1 2012, andChina's top five glyphosate producers' proportion of export volume and value of glyphosate A. I.has increased to 64% and 70% respectively in H1 2012, up 8% and 13% H1 2011.
Tag:
Glyphosate, seme-annual report, profit, loss, subsidiary, integration, industrail concentration,wastewater, technology, technique, price, volume, manufacturer, destinationThe market situation of glyphosate has improved in H1 2012, which may last and improve theoperating performance of four listed glyphosate companies further in H2 2012, according toCCM’sSeptember Issue
of
.
If the improved market situation of glyphosate last in H2 2012, it's estimated that four listedglyphosate companies' operating performance will improve further in H2 2012, or even they all canbe profitable this year (TABLE 5). On 28 Aug., 2012, Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) releasedits 2012 semi-annual report and claimed that it would achieve an estimated profit of about USD4.26million (RMB27 million) in Q3 2012, and thus Zhejiang Wynca would achieve break even in netprofit attributed to shareholders in the first nine months of 2012.On 22 Aug., 2012, Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) released its 2012semi-annual report and claimed that it would achieve an estimated profit of about USD2.13-2.92million (RMB13.5-18.5 million) in Q3 2012, and thus Anhui Huaxing would achieve net profit of about USD1.26-2.05 million (RMB8-13 million) in the first nine months of 2012. The other two listed glyphosate companies, Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (Nantong Jiangshan) and Jiangsu Yangnong Chemical Co., Ltd. (Jiangsu Yangnong), bothachieved good net profit in H1 2012, and it's estimated that the two companies would maintain their good performance in the second half of this year.The demand for glyphosate from overseas is still very strong in Q3 2012 and is likely to last till Q42012, which will promote the export volume of the four companies further. It's estimated that therevenue in the four companies would remain stable in H2 2012, or even exceed that of the first half of this year. 
 
In H1 2012, the export volume of glyphosate A. I. from Zhejiang Wynca, Nantong Jiangshan andJiangsu Yangnong has increased by 16%, 20% and 61% respectively, with export value increasingby 41%, 42% and 94% accordingly over that in H1 2011 (FIGURE 7). Because of themismanagement and shortage of operating funds, Anhui Huaxing didn't grab the sales opportunityin H1 2012, and its export volume and value of glyphosate A. I. decreased by 33% and 16%respectively. After the completion of acquisition by a strong company, namely CEFC Shanghai OilGroup Co., Ltd., Anhui Huaxing's problem of operating fund shortage and mismanagement wouldbe improved greatly, which would have a good effect on Anhui Huaxing's operating performance inH1 2012.The prices of yellow phosphorous, glycine, IDAN and PMIDA have increased little in Q3 2012, butthe prices of these raw materials except yellow phosphorous will not increase greatly in Q4 2012due to the overcapacity and limited demand under the situation of slow development in China'smanufacture industry. Besides, the price of glyphosate is still increasing in Q3 2012, and it's likelyto maintain at a high level in Q4 2012 mainly due to the strong demand for glyphosate and strictenvironmental protection policy, which will promote the situation of profit in the four companiesfurther. The development of China's manufacture industry was very low in H1 2012 and this situation islikely to last in H2 2012, which meant that the prices of raw materials for producing glyphosateincluding yellow phosphorous will not increase greatly in H2 2012. According to the announcementfrom National Bureau of Statistics of China, the Purchase Management Index (PMI) was 49.2% in Aug, 2012, down 0.9 percentage point over that in previous month, which was the first time todecrease below the gloom-boom index of 50 in China in 2012. Besides, the quantity of restarting production in small and medium-sized glyphosate producerswould not be too much due to the high cost in environmental protection, leading to the limitedincrease in glyphosate supply, and thus the price of glyphosate will stay at a high level in H2 2012.It's heard that China's Ministry of Environmental Protection will carry out a check in China'spesticide industry, and the companies which can't reach the waste treatment standard will beordered to stop production. Furthermore, in H1 2012, the operating rate and gross profit margin of glyphosate business of Zhejiang Wynca, Nantong Jiangshan and Jiangsu Yangnong in H1 2012 was about 100%, 90%,70% and 11%, 5%, 10% respectively, all increased over that in H1 2011. The operating rate of  Anhui Huaxing in H1 2012 was about 39%, down 17 percentage points over that in H1 2011, but itsgross profit margin in glyphosate business was 9%, up seven percentage points over that in H12011. After solving the problem of operating fund shortage, it's estimated that the operating rate of  Anhui Huaxing would increase in H2 2012.
 
 According to CCM' s analysis report on glyphosate price, as to Aug. 2012, the price of glyphosatetechnical was about USD4,646/t, up 22% over that in Jan. 2012 (FIGURE 7).The prosperity in China's glyphosate industry resulting from the improved market situation of glyphosate is a special scenery in China's bleak chemical industry at present, but for the glyphosateproducers which have witnessed the miserable situation in China's glyphosate industry in the pastthree years, how to improve the operating performance would be the most important thing in H22012 and the future coming years.
Source:
 
Glyphsoate China Monthly Report 1209
Content of Glyphsoate China Monthly Report 1209:
Zhejiang Wynca suffers huge profit loss in H1 2012 Anhui Huaxing can't turn loss into gain in H1 2012Jiangsu Yangnong: Glyphosate business promotes its operating performance in H1 2012Nantong Jiangshan is unsuccessful to sell glycine-supply subsidiary——Dongchang ChemicalOperating performance of four listed glyphosate companies may improve further in H2 2012China's glyphosate industry: Market integration is accelerating in 2012Overview of export rebate abolishment in China's glyphosate technical from August 2009 to July2012Zhejiang Wynca achieves breakthrough on treatment technique of glyphosate wastewater Glyphosate price continues to surge in September 2012Export price of glyphosate technical increases by 3.17% in July 2012
Glyphosate China Monthly Report
, a monthly publication issued by CCM International on 20
th
of every month, will keep track of latest dynamics, hotspots and competitiveness analysis, andforecasts on market trends of China’s glyphosate industry.
About CCM
 
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its newproprietary product ValoTracer.For more information, please visit http://www.cnchemicals.com.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->