Worldwide, in addition to the demand for chemical fertilizers in developing countries, the chemical fertilizer industry has now entered a mature period of slow growth in demand. From 1992 to 1998, the average annual growth rate of world nitrogen fertilizer consumption was 2.5%. The authoritative organization predicts that from 1999 to 2005, the average annual growth rate of world nitrogen fertilizer demand is only 2.2%. With the slow growth of fertilizer demand, in order to obtain higher profit rate and growth, fertilizer enterprises in developed countries have diversified into organic chemical industry, fine chemical industry and other related chemical fields, and formed scale advantages in some products.
The diversified development trend of international chemical fertilizer enterprises provides reference for domestic enterprises, and China chemical fertilizer enterprises should also implement the product diversification strategy in due course. However, the research and development ability of domestic fertilizer enterprises is generally backward, and it is restricted to enter the field of high value-added chemicals production. From the perspective of comparative advantage, domestic enterprises should give priority to the deep processing of fertilizers and basic organic raw materials, avoid direct competition with international advanced chemical enterprises prematurely, and enter the field of high value-added products with large investment and high risk after accumulating enough experience and funds. As long as the investment direction is correct and the scale can be formed as soon as possible, the product diversification strategy will enhance the growth of enterprises and reduce the business risks brought by a single product, which is one of the correct development directions of fertilizer enterprises. Analyze the real purpose of mainstream funds and find the best profit opportunities! )
The diversification strategy of nitrogen fertilizer listed companies has achieved initial results
Because the domestic nitrogen fertilizer production capacity has been surplus, it is more difficult to further explore the nitrogen fertilizer market, and nitrogen fertilizer enterprises have taken the lead in implementing diversification strategy in the fertilizer industry. Some listed companies in the nitrogen fertilizer sector have been involved in the production of chemical products, and have formed a certain scale advantage, and the diversified development strategy has achieved initial results.
The diversification strategy of Hubei Yihua (000422) is mainly pentaerythritol. In March 2003, the newly-built production line of pentaerythritol was put into production, which enabled the company to produce 30,000 tons of pentaerythritol annually, accounting for more than 50% of the domestic production capacity of pentaerythritol, ranking first in Asia and third in the world. At present, about half of the domestic consumption of pentaerythritol depends on imports, and the market prospect is good. If the production capacity is fully utilized, the company's annual sales revenue of pentaerythritol products will reach 250 million yuan. Due to the recent market downturn, pentaerythritol products made little contribution to the company's mid-term profit in 2003. However, once the market situation of pentaerythritol improves, the company's profits will increase substantially.
Chuanhua Co., Ltd. (000 155) comprehensively expanded the production capacity of melamine products except urea products, and invested heavily in technical transformation and expansion of melamine, becoming the largest melamine production and export enterprise in China. The scale effect and market advantage of the company's melamine products are obvious. In 2002, the sales revenue of melamine products was 1.80 billion yuan, accounting for 1.8% of the total revenue of that year. In the first half of 2003, the sales revenue was 9810.5 million yuan, a year-on-year increase of 30%. In June 2003, the newly-built melamine project with an annual output of10.2 million tons was officially put into production, which laid the foundation for the company's performance growth in the second half of the year.
Other listed companies in the nitrogen fertilizer industry have also made great progress in product diversification. For example, the sales of Lu Hua Hengsheng (600426)DMF (methyl formamide), formaldehyde, trimethylamine and other chemical products have accounted for half of the total sales, Yuntianhua (600096) has invested heavily in the production of alkali-free glass fiber with promising export prospects, and Cangzhou Dahua (600230) has invested in TDI (toluene diisocyanate) which is in short supply in China.
Enterprises that successfully implement diversification strategy have investment value.
The transfer of basic chemical products production to developing countries is the general trend of the development of chemical industry in the world, and enterprises that can seize the opportunity to seize the market will enhance their growth potential. Although the profit margin of basic chemical products may be low in the short term, if the scale advantage and stable industry position are formed, basic chemical products will also become a stable profit growth point for enterprises. By analyzing the competition in the relevant markets and the conditions of the enterprises themselves, we think that Hubei Yihua, Chuanhua and Yuntianhua, which are listed nitrogen fertilizer companies, have successfully implemented the diversification strategy. The future performance of these companies will get rid of the restriction of the slow growth of the fertilizer market and achieve a higher growth rate, which has great investment value.