Recently, the IPO of the main board of the Shanghai Stock Exchange has passed, and the company plans to raise 49.6 billion yuan, and the sponsor is Guoyuan**.
Synthesis |Economic Information Daily Prospectus Editor| arti
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Founded in 2012, the company is a fertilizer manufacturer specializing in the research and development, production, sales and service of compound fertilizer and nitrogen fertilizer products, and is the main operator of the agricultural fertilizer business segment of China Salt Group.
The company has a state-owned background, and its controlling shareholder is Red Sifang Holdings, which accounts for 88 percent of the company's total share capital67%。The actual controller of the company is China Salt Group, which is a subsidiary of the State-owned Assets Supervision and Administration Commission.
The Red Quartet plans to raise 49.6 billion yuan, of which 1200 million yuan is intended to be used to repay bank loans and supplement working capital, and the remaining funds are intended to be used to expand 200,000 tons of new efficiency-enhancing special fertilizer projects, expand 50,000 tons of special high-quality potash fertilizer for cash crops and supporting projects, respectively, to invest 23.6 billion yuan, 14 billion yuan.
According to the prospectus, the construction of this fundraising project will make up for the shortcomings of Red Sifang's products in high-quality potassium sulfate compound fertilizers, and the company's market position is expected to be further enhanced.
After years of development, the company has built production bases in Hefei, Anhui, Liling, Hunan, Suizhou, Hubei and Fuyu, Jilin, with an annual production capacity of 300,000 tons of urea, 2.3 million tons of various compound fertilizers and 50,000 tons of water-soluble fertilizers.
According to the statistics of China Phosphate Compound Fertilizer Industry Association, in 2020, 2021 and 2022, the company's compound fertilizer production and sales industry ranked 13th, 12th and 11th respectively, ranking in the forefront of the national compound fertilizer industry.
According to the data of the National Bureau of Statistics, from 2019 to 2021, the national average annual compound fertilizer application amount is about 22.5 million tons (converted into pure), and the physical amount of compound fertilizer application in the country is about 50 million tons according to the total nutrient content of 45%, so as to calculate the company's compound fertilizer market share in 2022 is about 240%。
With high-quality product quality and professional services, the company has established a good market brand in the field of compound fertilizer, and has won wide recognition from downstream leading enterprises such as Beidahuang and Zhonghe Agricultural Service.
The company's performance has achieved steady growth in recent years, and the operating income from January to September in 2020, 2021, 2022, and 2023 is 268.1 billion yuan, 305.4 billion yuan, 417 billion yuan, 300.9 billion yuan. The net profit attributable to the parent company was 1200 million yuan, 11.1 billion yuan, 11.9 billion yuan, 13.3 billion yuan. In 2022, the revenue scale has exceeded 4 billion yuan.
Red Sifang said in the prospectus that compared with amino acid compound fertilizer, high-tower compound fertilizer has the advantages of high compressive strength and fast water solubility, uniform nutrients, effective medium and trace elements, improved fertilizer utilization rate, and stable product quality. After the expansion of 200,000 tons of new efficiency-enhancing special fertilizer project is completed and put into production, it will produce 200,000 tons of new efficiency-enhancing tower special compound fertilizer per year, which will greatly enrich the product structure of the company's Hefei production base, improve the company's product competitiveness and market share, and further enhance the company's market position.
In fact, China's grain production is more dependent on chemical fertilizers, and the resources such as phosphate rock, potash ore, and coal required for fertilizer production are increasingly tight. The development of new special and functional fertilizers, improving fertilizer utilization efficiency, promoting the transformation of agriculture from resource consumption to resource efficiency, and realizing sustainable agricultural development have become extremely important contents in the development of modern fertilizer industry and agricultural science and technology.
After the implementation of the project, it will improve the company's product production capacity, enrich the company's product structure, enhance product competitiveness and expand market share, and will have a positive impact on the company's production and operation.
From the perspective of the competition pattern, there are a large number of enterprises in the compound fertilizer industry where Hongsifang Fertilizer is located, most of which are small in scale, low in concentration, serious in product homogeneity, and fierce in market competition. If the company is not able to maintain a leading edge in technological innovation and new product development, it may affect the company's product sales and market share.
Due to China's vast territory, the use of fertilizer products throughout the country, the end users are mainly agricultural growers, relatively scattered, so listed companies in the same industry generally adopt the distribution-based sales model. At present, the company has built production bases in Hefei, Anhui, Liling, Hunan, Suizhou, Hubei and Fuyu, Jilin, and has established a mature and stable dealer network covering the main planting areas.
During the reporting period, the revenue of Red Sifang Fertilizer from the distribution model accounted for about 80%, accounting for a relatively large amount, which shows that its sales are more dependent on dealers. The company's distributors are mainly individuals or individual industrial and commercial households, scattered in various cities, towns and other regions, and its end customers are retail outlets or agricultural growers in their regions.