Medium chemical fertilizer fell 6% Goldman Sachs to sell low for 3 Hong Kong dollars

Chinese chemical fertilizers fell sharply this morning, with shares falling 5.61% per cent to HK $3.7 and 38.84 million shares a half.　　Goldman Sachs issued a report that downgraded the unit from neutral to sell, dropping its target price from HK $3.7 to HK $3, at a discount of 19% per cent on market prices. Goldman Sachs refers to a 31%-85% reduction in earnings per share, excluding inventory reductions, from the medium-term fertiliser's recurrent business in 2009-2011. According to the channel survey, fertilizer demand grew less than expected in the second quarter of this year. At the same time, the recent decline in chemical fertilizer prices, so that the Chinese chemical fertilizer faced with the decline in sales profit margins and inventory impairment risk. Although the share price of China's chemical fertilizers rose in June, Goldman Sachs believes it is too early to turn bullish on the stock.