Liuguo Chemical(SH:600470) IPO日报·2025-05-28 13:28Core Viewpoint - Liu Guo Chemical plans to raise up to 800 million yuan through a private placement to invest in a 280,000 tons/year battery-grade refined phosphoric acid project, with a total investment of 1.194 billion yuan and a payback period of 6.55 years [1][4]. Group 1: Company Overview - Liu Guo Chemical is primarily engaged in the production and sales of phosphate fertilizers and fine chemical products, being one of the larger integrated manufacturers in East China [4]. - The company has production capacities of 450,000 tons/year for monoammonium phosphate, 640,000 tons/year for diammonium phosphate, 300,000 tons/year for urea, and 1,550,000 tons/year for compound fertilizers [4]. Group 2: Industry Trends - Since 2014, China's phosphate fertilizer usage has declined from 8.4534 million tons to 5.3630 million tons in 2023, reaching a recent low due to government policies promoting modern agriculture and controlling traditional fertilizer usage [4]. - The main revenue sources for the company are phosphate fertilizers and compound fertilizers, generating sales revenues of 2.68 billion yuan and 2.183 billion yuan respectively, accounting for 42.88% and 34.93% of total revenue [4]. Group 3: Financial Performance - The company's operating revenue has continuously declined from 7.549 billion yuan in 2022 to 6.251 billion yuan in 2024 [4]. - The net profit attributable to the parent company has also seen a significant drop from 237 million yuan in 2021 to 2.3 million yuan in 2023, with a slight recovery to 2.5 million yuan in 2024 [5]. - The gross margin decreased from 14.85% in 2021 to 8.05% in 2023, with a minor recovery to 9.36% in 2024 [5]. Group 4: Strategic Shift - In response to the ongoing pressure in traditional fertilizer business, the company is transitioning towards high-value sectors, specifically entering the production and sales of battery-grade refined phosphoric acid [7]. - The planned investment will significantly enhance the company's refined phosphoric acid production capacity, aligning with the growing demand from the rapidly developing electric vehicle and energy storage industries [10]. Group 5: Market Challenges - The industry faces challenges with an imbalance in supply and demand as new capacities are released, leading to project terminations in the lithium iron phosphate battery supply chain due to market oversupply and price declines [11][12].