Donghai Securities: First gives Guangxin shares a "buy" rating, industry prosperity is expected to rise.
A research report by Donghai Securities pointed out that Guangxin Stock is a large domestic pesticide active ingredient and pesticide intermediate production enterprise using phosgene as raw material. The company has a layout of phosgene industry chain, chlorobenzene industry chain, and upstream supporting capacity, forming an industry chain of raw materials-intermediates-pesticides with a high degree of integration. The company has a phosgene licensed production capacity of 320,000 tons/year, currently using a total capacity of 68,000 tons/year, accounting for only 21% of the licensed capacity. The company has extensive production layout of pesticides and intermediates, including fungicides such as carbendazim, methyl thiophanate, and azoxystrobin, herbicides such as dicamba, glyphosate, and haloxyfop, and pesticide intermediate capacities such as salicylonitrile and KL540. The company's phosgene pesticide and intermediate production chain has obvious cost advantages, providing competitiveness for the company. Phosgene has a wide range of downstream applications, widely used in the fields of pesticides, pharmaceuticals, dyes, etc. It can also be used for the production of isocyanates, with excellent performance of modified products, providing a new direction for the company's industrial development. The overall pesticide prices are relatively low, and the industry's prosperity is expected to improve. In addition, the company has ample cash flow to guarantee the upgrading of the industrial chain, help optimize costs, and provide a "buy" rating for the first time.
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