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Author/Source: Sina Finance Date: 2009-4-1 ---------------------------------------------------------------------------------- Faced with strong expectations of insufficient natural gas supply and rising natural gas prices, Chitianhua took advantage of Guizhou's natural advantages of rich local coal resources to vigorously develop coal chemical industry, expand urea production capacity, and maintain sustained profit growth. Guizhou Province has a relatively large rural population and concentrated end consumers. It is easier for nitrogen fertilizer companies to grasp market demand and lay a good market foundation. At the same time, it can save transportation costs and expenses. The amount of nitrogen fertilizer applied to cultivated land in Guizhou and surrounding provinces is lower than the national average, and the growth rate of nitrogen fertilizer application is higher than the national average, indicating that there is still room for improvement in the demand for nitrogen fertilizer in Guizhou and surrounding provinces. In addition to expanding the company's market share in Guizhou, the new urea production capacity also requires markets in other regions. The company's share in the Sichuan and Chongqing markets has been squeezed over the years, and the Guangdong and Guangxi regions in the south of Guizhou will be a relatively ideal market. The company's coal chemical project involves alternative energy sources of methanol and dimethyl ether. Under the current market policy environment, sales of dimethyl ether can increase the company's operating income and expand the company's scale, but its contribution to profits is relatively small. The joint-stock company Chitianhua Paper will support the company's performance in 2009. It is expected that EPS will be 0.47 yuan and 0.65 yuan in 2009 and 2010.