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if cannot rise prices, then it means less profits what...
like that xlx will drop wun it ?
Dealers said China XLX rose because buying interest could be from sidelined fund managers doing some portfolio restructuring.
China's central planner warned fertiliser companies on Thu not to raise prices of important ingredients and set a maximum range for mark-ups on imported fertiliser, amid concerns about rising prices.
Soaring oil prices helped to boost fertiliser prices both internationally and in China, leading planners to worry that farmers might stint on fertiliser and stunt the grains harvest.
"Right now spring planting is under way across China, so in order to curb inappropriate price gains, protect farmers' profits and promote agricultural productivity, we are strengthening control over potassium chloride and compound fertiliser prices," the National Development and Reform Commission said on its website on Thu.
Importers Sinochem and Sinoagri are only allowed to mark up prices to domestic fertiliser producers by 5%, or to trading companies by 3%. Prices at the point of sale could only be marked up 7%compared with the producers' price, the NDRC said.
It added that it would set the import price for overseas shipments delivered to the port.
"Prices cannot rise any more, although they are allowed to fall," it said.
China last month slapped an additional 100% points onto the export tariff on fertiliser exports, to prevent producers from profiteering from soaring international prices. Its move came after Chinese importers agreed to pay triple for potash and sharply reduce volumes purchased under term contracts.
Agricultural officials and economists have written that soaring prices, especially for agricultural imports such as fertilisers and diesel, could reduce farmers' willingness togrow crops or stimulate further food inflation. Lower grains production would raise the cost of feed, extending a rise in meat prices that drove headline inflation last year.
"Minimum rice prices have only risen by 10%, but fertiliser prices are up 30 to 40%," said Liao Xiyuan, researcher with China National Rice Research Institute.
China is targeting a grains harvest of more than 500 million tonnes this year, as it seeks a 5th consecutive year of rising harvests, the Ministry of Agriculture said this week.
ho ho ho !!!!
closed above 200 ma !!!!!!!!!!!!!!!!!!!!!
1.05 now
above 200MA
if can close above 200MA, coupled with convicing volume.... then swee liao
China XLX may have risen on this news.
Sinofert, China's largest distributor of imported fertilisers, expects a shortage of up to 3 million tonnes of potash this year in China after imports fell by about half and tight supplies pushed prices sharply higher.
China could have a shortfall of up to a quarter of its total demand of 11 million to 12 million tonnes of potash this year, and Sinofert hopes to sign an import agreement much earlier in '09 to secure supplies of the nutrient, the company's senior vice president, Harry Yang, told Reuters in an interview on Tue.
Sinofert sold 5.7 million tonnes of potash last year, up 25% from '06, accounting for 55% of China's need. Soaring fertiliser prices and expanded distribution are expected to lift Sinofert's revenue and profit by at least 20% this year, Yang said.
Booming demand for grain across the globe, driven by the growing needs of developing economies and mandates for the increasing use of biofuels in the US and Europe, have pushed prices of agricultural crops and allied products sharply higher.
China is the world's largest fertiliser market and the biggest importer of potash, which is used to boost crop yields.
Sinofert agreed in Apr with Russia's Belarussian Potash Corp (BPC) and North America's Canpotex to pay more than triple what they did a year ago -- or as much as US$670 per tonne, analysts say -- to secure potash supplies, but overall imports still fell about half from last year.
"We expect the tight supply of potash around the world to remain in '09. We will try to secure our '09 import contracts at an early date," Yang said.
Chinese importers normally negotiate a hefty discount to other large buyers such as India and Brazil because of their volume purchases.
But this year, China lost some of its pricing leverage as Indian importers, who normally price potash contracts after China, jumped ahead in the queue to book supplies at a delivered price of US$625 a tonne.
"Our bargining power has weakened a lot this year," said Yang. "I don't think the situation will improve in the short run, but from long term view, China still has bargining power."
Last month, China slapped massive tariffs on fertiliser exports to control rapidly rising domestic agricultural costs and inflation, and above all to ensure it grows enough grain to feed its 1.3 billion people.
Yang said the 100%-plus tariffs would have little impact on Sinofert because exports only account for 5% of its 15.2 million tonnes fertilizers sold last year.
To fulfill its target of raising total production capacity to 10 million tonnes in 2008 and 15 million tonnes in '10, the company will speed up acquisitions.
Sinofert bought 3 fertiliser assets from parent company Sinochem in '07 and Yang said it is eyeing more assets injection, including Qinghai Salt Lake, in which Sinochem has 23% stake.
$1.50 to COME !!!!!!!!!
it closed accurately at the 200MA
those who bought it good luck.....BUT if situation turn bad chow ahhhhhhh if you got profit (hope im wrong).....hehe
ericsim ( Date: 11-Apr-2008 18:34) Posted:
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haha..............counter UPGRADED no longer penny stock liao lah!!!!!!!!!!!!!
ericsim ( Date: 24-Apr-2008 09:59) Posted:
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lol....
.......................
ykjuay ( Date: 06-May-2008 16:11) Posted:
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commodities in high demand, more fertiliser needed to grow crop fast
why today XLX fly ?
Rice,food etc prices go up. Agiculture needs fertilisers ,,,,,maybe long term xlx business also go up??????/
any idea the sudden ... drop ... from .97 to .91 ....
XLX is the star.
Fertiliser is a must .
Report from Lim&Tan.
China XLX's 1Q08 performance was impressive with net profit rising 42% yoy and 55% qoq to RMB113mln.
The robust performance reflects strong demand for fertilizers as soft commodity prices sky rocket in China and as the China government provides more subsidies to farmers to increase crop yields to fight food inflation in China.
While their raw material (coal) price for Urea increased 13%, the company was able to offset this by better cost controls, resulting to overall Urea cost increase of only 4.9% yoy. The company was able to raise Urea selling price by 10.3%, resulting in a favourable margin impact. However, we understand that the company has already hit the maximum price cap, hence further price increase is not possible unless the government changes the rule. This will likely depend on the rate of price increase for their raw material. If coal price was to increase further going forward without the government's approval for price increases then the company's profit margin may be squeezed.
Looking ahead, while the government has recently raised the export tax for Urea, management sees little negative impact from this as they do not export their products, supply is currently very tight due to government subsidies to farmers, high crop prices which result in urgency to increase crop yields, and 2Q & 3Q are peak seasons.
The 3rd new production plant is only expected to start commerical production in 3Q09.
While the government's increase of export tax would not directly hit the company, it would nevertheless result to more export producers cutting back on export sales to sell locally, resulting in more local supply. And this would likely increase the near term supply domestically. The other uncertainty would be the still rising trend of their raw material price.
Hence, consensus is expecting full year net profit to increase only 17% to RMB370mln this year, implying a slower growth rate for the next 3 quarters relative to 1Q08's bottom-line growth of 43%. With a market cap of $875mln at $0.85, its forward PE would be about 12x. Hong Kong listed peers are also around 12-13x PE.
I also noted down as 24th April...strange..did they change the date?
Thanks so much! Alligator.
Alligator ( Date: 24-Apr-2008 22:35) Posted:
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CHINA XLX FERTILISER LTD.
| DIVIDEND Announced on 2008-02-28 |
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| Particulars : | SGD 0.014 ONE-TIER TAX |
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| Ex-date : | 7 May 2008 |
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| Buy-In Last Cum Date : | 12 May 2008 |
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| Record Date : | 9 May 2008 |
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| Date Paid/Payable : | 22 May 2008 |