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Location:Home >> Information >> Company news >> The Pesticide Industry Steps into New Rising Period
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The Pesticide Industry Steps into New Rising Period

Number of visits: Date:2016-4-14 15:13:52


1. The pesticide industry has a good start and revives stably in 2012. After the three consecutive “small year” from 2009 to 2011, the pesticide industry shows gratifying sign of recovery in 2012: production enterprises (especially leading enterprises) feature high load and low inventory, down-stream enterprises are active in purchase, the export realizes great year-on-year increase, and the prices of mainstream products recover steadily; the business condition of domestic and foreign listed companies in pesticide industry takes an obvious turn for the better on a year-on-year basis.

2. The supply pattern is continuously improved. Warming up of demands is the fundamental reason of industry resuscitation. In terms of supply, after the three consecutive sluggish years from 2009 to 2011, many domestic medium-sized and small enterprises exit market and the excess capacity degree of mainstream products decreases obviously; on the other hand, a large number of enterprises cannot display their normal productivity because of pressure from environmental protection. In this year, the major crop plant diseases and insect pests occur frequently in general, which becomes the great opportunity for ascending of the industry. Among mainstream products, the esbiothrin industry has stable pattern and production structure optimization is the important motive power for growth; the export of imidacloprid is still prosperous and the degree of actual over capacity is low; the glyphosate industry greatly transforms and upgrades the production technology and equipment, basically forming the recovery situation.

3. The industrial transfer of high-barrier products is still be carried forward. From medium and long-term perspective, the process that the domestic pesticide industry undertakes overseas capacity transfer is still underway. The new-stage capacity transfer of high-barrier products more tests the comprehensive ability of domestic enterprises including technical level, R & D and innovation ability, production management, environmental protection standardization, cooperation credit, long-term cooperation potential, etc. Relying on their comprehensive advantages, domestic advantageous enterprises in the field generally can form deep and long-term relationship with customers. In the process, they continuously optimize the production technologies of related products and build exclusive cooperative relation regarding a series of products so as to obtain fat profit.

4. Investment Strategy:

Pay special attention to three kinds of investment opportunities. We judge that the domestic pesticide industry has gradually recovered from the bottom and is stepping into a new rising period. Leading enterprises in pesticide industry face good development opportunity. We suggest paying high attention to three kinds of investment opportunities:
Domestic advantageous pesticide and pesticide intermediate enterprises which benefit from the industrial transfer of high-barrier products and are expected to realize continuous raid growth in the process are represented by Huabang Pharmacy (15.86,0.14,0.89%) and Lianhetech (21.50,-0.19,-0.88%);
Pesticide subdivision industry leaders, which benefit from supply pattern improvement and demand recovery of the industry and have new growth points in the future, mainly include Yangnong Chemicals (22.27,0.05,0.23%), Changqing Stock (17.95,0.06,0.34%), etc.;
After long-term downturn, the industries of staple products such as glyphosate greatly transform and upgrade the production technology and equipment, so that they enter the recovery period and the product price and profiting condition are improved obviously. We suggest paying attention to Xinan Stock (9.43,-0.23,-2.38%) and Jiangshan Stock (15.91,-0.35,-2.15%).

5. Prompt on Risk: the risk that the demand recovery cannot reach the expectation, the risk of great rise of the price of raw materials and the risk of illegal production of small enterprises. (source: Industrial Securities)

TypeInfo: Company news

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