The tide of mergers and reorganizations will lead to the outbreak of pesticides and chemical fertilizers

Recently, relevant departments formulated specific policies for the merger and reorganization of pesticide companies in China, requiring that the total number of pesticide companies be reduced by 30% in 2015. Affected by this news, pesticides and fertilizers showed strong performance yesterday, with more than 80% of stocks in the sector gaining dividends, including Dacheng shares limit, and the overall increase of the sector reached 2.01%, which is the second largest increase among the two cities.

The number of pesticide companies reduced by 30% within 5 years

On the 19th, the Ministry of Industry and Information Technology, the Ministry of Environmental Protection, the Ministry of Agriculture, and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued a pesticide industrial policy announcement. The "Pesticide Industry Policy" pointed out that at present, China's pesticide production capacity and output are already in the front ranks of the world, but there are still problems such as serious redundant construction, excess production capacity, prominent structural contradictions in the industry, and chaotic business order. The "Pesticide Industry Policy" puts forward eight policy goals, namely, ensuring the safety of agricultural production and environmental protection, accelerating the upgrading of process technology and equipment, optimizing the layout, and standardizing the market order. The document states that by 2015, the number of pesticide companies in China will be reduced by 30%.

According to industry sources, the introduction of the "Pesticide Industry Policy" will promote the merger and restructuring of the entire pesticide industry. Because of the natural advantages of listed companies, listed companies can raise funds to acquire assets through the issuance of new shares. In mergers and acquisitions, related pesticide companies will also receive assets injections. This will constitute an industry-wide advantage for the entire industry and related companies will directly benefit from it. .

The agrochemical industry will enter the upstream channel next year

“A series of factors have gradually made the fertilizer and pesticides market recover gradually.” Kang Tieniu, an analyst at Hongyuan Securities Chemical Industry, said that the recent domestic insect pests in some areas have increased the demand for domestic pesticides. At the same time, at present, fertilizers have entered the low-tariff period in the off-season, and their export volume has grown rapidly. In the second half of the year, the demand for international fertilizers and pesticides is positive. In addition, the integration between international potash fertilizer giants also brought strong expectations of potash price increases.

Industrial Securities said in the research report of the agrochemical industry that the demand for agrochemical industry in 2011 will be good, which will in turn boost the industry's recovery. First of all, the reduction in food production and the loss of soil nutrients caused by floods, etc. this year will increase the demand for agrochemical products in the second half and even later years. Second, the pesticide industry has experienced sluggish demand for three consecutive years, and it is expected that demand will enter the upstream channel next year with high probability. Finally, tight supply and demand will drive up the prices of agricultural products at home and abroad, and the prospects for the growth of agricultural acreage next year can be expected. All these factors will have a positive impact on the pesticide and fertilizer industries next year. “The agrochemical industry has reached the point of early deployment.” Industrial Securities said that investors may consider actively deploying potassium fertilizer shares and pesticide shares, recommending salt lake potash fertilizer, Yangnong Chemical, Noppsin, UMC, Xingfa Group, and Winbond Pharmaceuticals. Related stocks.