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This post was last edited by FishSwimmingInTheDesert on 2021-11-27 at 19:23. The prices of Xinlianxin Fertilizer’s products have risen, leading to a significant increase in its performance. Institutions are expressing great optimism about its future prospects. Author/Source: Xinlianxin Chemical Industry Group; Date: 2021-11-21; Page views: 53. Recently, Xinlianxin Fertilizer, listed on the Hong Kong Stock Exchange, announced impressive third-quarter results, demonstrating that the company has entered a phase of accelerated growth. In fact, since the beginning of the year, the stock prices of several chemical sector stocks, including Xinlianxin, have risen sharply. Recently, many investors suddenly realized that the prices of chemical products have risen so much; upon closer inspection, it turned out that chemical industry stocks had been on the rise for some time already. Regarding the future outlook for the chemical industry, some brokerage analysis firms suggest that the industry is entering a period of prosperity and will remain in this state of strong growth in the near future; they are optimistic about the companies operating in this sector. Performance saw a nearly three-fold increase. On November 16, Xinlianxin Fertilizer released its financial results, showing that the company’s unaudited total revenue amounted to approximately 11.76 billion yuan, representing a year-on-year increase of 56% ； The net profit attributable to the parent company was 1.02 billion yuan, a year-on-year increase of 264%. Xinlianxin Fertilizer stated that with the resurgence of the pandemic, restrictions on grain exports have led to rising global agricultural and food prices, which in turn has increased the demand for and prices of fertilizers and chemical products in the domestic market. Specifically, the revenue from each product of Xinlianxin Fertilizer has increased. Among them, the sales revenue from urea amounted to 3.41 billion yuan, a year-on-year increase of 45% ； Revenue from compound fertilizers amounted to 2.82 billion yuan, an increase of 11% on a year-on-year basis ； The sales revenue from methanol amounted to 1.22 billion yuan, a year-on-year increase of 456%. The sales revenue from dimethyl ether amounted to 990 million yuan, representing a year-on-year increase of 93% ； Melamine sales revenue reached 810 million yuan, a year-on-year increase of 70% ； The sales revenue from furfuryl alcohol amounted to 550 million yuan, representing a year-on-year increase of 51%. Wang Qiang, an analyst at Anxin International Securities, noted that the prices of multiple products produced by Xinlianxin Fertilizer continue to rise, and they are expected to remain high in the short term. Data shows that urea prices continued to rise in 2021, increasing from 1,800 yuan per ton at the beginning of the year to 3,000 yuan per ton by November, a rise of 67%. The prices of chemical products such as methanol, dimethyl ether, melamine, liquid ammonia, and furfuryl alcohol have increased to varying degrees. Among them, the price of melamine saw the biggest increase, rising from 6,600 yuan per ton at the beginning of the year to 20,000 yuan per ton currently, an increase of nearly 300%. Wang Qiang believes that, given the tight supply-demand balance and the ongoing rise in food prices, fertilizer prices will remain high in the short term; therefore, he maintains a buy rating for Xinlianxin Fertilizer. http://img.yf116.cn/image/img/20211121/172726282275.jpg The \"dual carbon\" goals are reshaping industry landscapes. In 2020, China introduced for the first time the \"dual carbon\" objectives of achieving carbon peak and carbon neutrality, which has had an impact on many industries. Yang Hui, the leading analyst in the chemical industry at Western Securities, believes that the \"dual carbon\" goals will have a profound and long-term impact on the chemical industry. He said that from the supply side perspective, the \"dual carbon\" goals have a significant impact on the reduction in the supply of traditional resources. Many companies will shift from simply expanding production volume to focusing on the development of new material industries downstream. Those companies that are able to secure access to these resources will achieve substantial profits, and such profits will remain high in the long term. “The rise in the stock prices of chemical companies this year actually reflects expectations of rising prices for traditional energy sources in the future. ” Zhang Zhiyang, an analyst in the chemicals sector at Industrial Securities, also believes that the \"dual carbon\" goals will remain the main driving force for the development of the chemicals industry over the coming period. The production and expansion of energy-intensive industries will be restricted, and short-term uncertainties on the supply side may arise due to policy fluctuations. Looking at the development trends of the chemical industry since the supply-side reform, as safety and environmental protection standards have been tightened, outdated production capacities have been phased out, small and medium-sized enterprises have faced restrictions on expansion, and the concentration level of the domestic chemical industry has continued to rise. Following the \"dual carbon\" goals, this process is likely to accelerate. Xinlianxin Fertilizer also stated in its announcement that, with the implementation of the \"dual carbon\" policies, outdated production capacities are being phased out more rapidly, new production capacities are subject to stricter controls, and the entry barriers for the coal chemical industry have increased; as a high-quality existing enterprise, the group benefits from these developments.