Two raising projects to be put into production next year Huachang chemical industry is expected to usher performance inflection point

Huachang Chemical (002274, closing price 19.71 yuan) main business is urea, compound fertilizer, soda ash, ammonium chloride and methanol, but by the economic downturn and low prices of products, the company in the first three quarters of the total loss of 88.8137 million yuan, is expected to loss for the year 100 million Yuan ~1.1 billion.　　However, many recent industry insiders pointed out that at present, the company's industry has "no difference", the company's main product prices have begun to rise, especially with the power structure adjustment of national debt projects and 1000 tons/year solid sodium borohydride investment projects will be put into production in 2010, the company's performance is expected to usher in a turning point next year.　　The cost is expected to significantly reduce the public data display, the company is located in Zhangjiagang, Jiangsu, Zhejiang and Shanghai Regional Market, the company's nitrogen and soda production scale are in the leading position, the company has now formed a synthetic ammonia, urea and soda ash 300,000 tons/year, compound fertilizer 800,000 tons/year, ammonium chloride 330,000 tons/year, methanol 50,000 tons/year capacity. As a result of the company's original production of synthetic ammonia used lump coal, in order to reduce production costs, the company is gradually increasing the proportion of briquette.　　Changjiang Securities is expected to use the proportion of the company's 2009-type coal in the 30%~40%,2010 year will reach about 50%, and the increase in the use of briquette will lead to a reduction in the company's ammonia costs. Changjiang Securities Basic Chemical Industry researcher Feng Xiantao pointed out that if all synthetic ammonia using lump coal, in accordance with 1 tons of ammonia consumption of 1.2 tons of lump coal and the current Yangquan smokeless block 765 yuan/ton (excluding tax) calculation, the company's synthetic ammonia coal cost of 918 yuan/ton;　　In accordance with 1 tons of ammonia consumption of 1.5 tons of coal and the current Yangquan smokeless coal 525 yuan/ton (excluding tax) calculation, the company's ammonia coal cost of 788 yuan/ton; Assuming that the other costs of synthetic ammonia are unchanged, the cost of using briquette ammonia will decrease by 130 yuan/ton. And the cost of the company's products will decrease with the cost of ammonia. Assuming that each ton of urea and each of the two tons of alkali consumption of 0.60 and 0.36 tons of synthetic ammonia, the use of briquette production of ammonia, the company per ton of urea and each double tons of the cost of the joint alkali reduced 78 yuan/ton and 47 yuan/ton.　　Assuming that 2010 years of urea and alkali sales are 300,000 tons and 500,000 tons respectively, the company's cost will be reduced by 46.9 million yuan. In addition, according to the announcement, as one of the initial investment projects, the power structure adjustment of the national Debt project is expected to be completed in May 2010. The project uses the company's chemical production of slag, white powder and fuel coal for mixing, the resulting heat and electricity are all provided to the company's production units. According to the calculation, the production of this device is equivalent to saving 107100 tons/year of fuel coal for the company. According to the power coal 734.33 yuan/ton calculation, 2010 and 2011, the project will be cost-saving for the company 39.34 million Yuan and 78.69 million yuan/year respectively. [Page] Sodium borohydride project is the next bright spot 1000 tons/year Sodium Borohydride project is another IPO when the company 2008Accounts。 December 25, The daily economic news reporter to call the company as an investor, the company securities staff, the project was originally scheduled to reach the use of the state in December this year, but due to the project in the course of the preparation of the country to add some approval content, resulting in delayed investment,　　However, June 2010 is expected to reach its use. Data show that the production of sodium borohydride in China began to grow rapidly in 2005, and the output reached 2000 tons in 2006. In foreign countries, sodium borohydride is widely used in papermaking industry, and domestic sodium borohydride is mainly applied to reducing agent in pharmaceutical industry, and its dosage accounts for about 87% of domestic total production.　　According to the company's disclosure data, China is expected to consume 4800 tonnes of sodium borohydride in 2010. Changjiang Securities pointed out that company with metal sodium, hydrogen, boric acid and methanol as raw materials, the use of boric acid trimethyl ester-sodium hydride method of production of sodium borohydride, improve the hydrogenation, esterification and boron hydride reaction production efficiency and intermediate product purity, reduce the consumption of raw materials and solvents. In terms of cost, the common process produces about 6000 degrees of consumption per ton of sodium borohydride, while the Huachang chemical process consumes 3,200 degrees per ton of sodium borohydride.　　Assuming the electricity price is 0.30 yuan, only one power can save the cost of 840 yuan/ton. Feng Xiantao estimated that 2010 and 2011 Company production of sodium borohydride will be at 400 tons and 900 tons, in accordance with the price of 160,000 yuan/ton and 90,000 yuan/ton of cost calculation, 2010 and 2011 Sodium Borohydride will contribute to the company margin of 28 million yuan and 63 million yuan; according to 15% Income tax rate (regardless of other costs), the company 2010 and 2011 earnings per share will be increased by 0.14 yuan and 0.31 yuan, the project is expected to become the company's performance in the next two years booster.　　The Northeast Securities Shao also pointed out that the company's sodium borohydride project has cost advantages, static Analysis 2010 and 2011 can contribute to the company EPS0.15 Yuan and 0.3 yuan, may become a bright spot. Company: The main products began to increase the price of the Yangtze River Securities pointed out that the company's main products methanol, soda, ammonium chloride, urea and compound fertilizer prices have begun to uplink, due to high elasticity, the company's performance inflection point will also appear.　　According to the calculation of the Changjiang securities, assuming that the average price of these products rose 50 yuan/ton, the company's earnings per share will be increased by 0.40 yuan, which means that once the company's product prices rebound, the company's 2010 performance may be a sharp reversal. The Securities department staff said that the first three quarters due to the continued low product prices, industry and company development is more difficult, and the recent company's main product prices began to rise, is expected to be better than three quarters in four quarter. A senior private-equity person in an interview with reporters also said: "Chemical stocks say elasticity, once the product price rise, from the performance of the stock price, the performance of large companies will be the first to rise." "And the Northeast Securities industry researcher Shao also pointed out:" The industry has been poor, the recovery is expected to be clear, compared with peersListed companies, the company's valuation is relatively low. ”