Hong Kong stock concept tracking | Russian and Belarusian manufacturers coordinate to cut potassium fertilizer production by 10%. Potash fertilizer companies may benefit from price fluctuations (with concept stocks included)

Belarusian President proposes Belarusian potash companies to coordinate with Russian producers to cut potassium fertilizer production by 10%. According to reports, Lukashenko expressed during a meeting with Andrei Ryzhkov, the new CEO of Belaruskali, one of Belarus's top potash producers, "Everyone will understand that this is a very expensive product, and you need to pay a proper amount for it." He requested Ryzhkov to follow up on his proposal after discussing it with some fertilizer companies in Russia. According to statistics from the International Fertilizer Association (IFA) and the Food and Agriculture Organization of the United Nations (FAO), Russia and Belarus together control up to 40% of global potassium fertilizer exports, and Belarus's Belaruskali potash company is subject to joint sanctions initiated by the United States and the European Union. The potassium fertilizer supply pattern is relatively concentrated, with Russia, Belarus, and Canada being the three major countries. The downstream demand in the long-term dimension is relatively rigid, and the industry trend mainly focuses on industry supply. The supply of potassium fertilizer is gradually recovering after being affected by geopolitical factors, but costs have increased. Leading potassium supply companies have a strong demand for prices and are expected to support price formation through coordinated supply. China is the world's fourth-largest producer of potassium fertilizer, and Sinolink research suggests paying attention to Chinese potassium fertilizer production companies. Related Hong Kong stocks for potassium fertilizer include: Migao Group (09879): Migao Group has high-quality customer resources and significant growth potential, with sales growth expected to be around 15% in the next three years. In addition, China relies on imports for potassium fertilizer, and Migao has scarce potassium fertilizer import rights. Migao Group has been operating potassium fertilizer business in China for over 20 years, establishing a comprehensive supply channel for potassium chloride, and can obtain stable potassium chloride supply from major overseas potassium fertilizer producers at competitive prices. Sinofert (00297): Sinofert recently officially launched the first product in the "Weidefeng" series of biological potassium fertilizer products, marking a solid step forward for Sinofert's "biological +" strategy. It is reported that the company's net profit in the first quarter is approximately 499 million yuan, an increase of about 1.63% year-on-year, mainly due to the firm promotion of the "biological +" strategic transformation, focusing on core biological products, and continuous efforts in biological technology products, driving sales and gross profit levels steadily increasing and resisting the impact of market fluctuations on performance. It is reported that on July 9, the China Potash Import Negotiating Group (Sinofert, China National Chemical Corporation, China National Farming Corporation) reached an agreement with Food Safety Supply Chain Ltd (Dubai) on the annual potassium fertilizer import contract price for 2024, with the contract price at 273 US dollars/ton CFR.