Sichuan And Chongqing Hongfeng Disturbs A Shares: Water Conservancy And Seed Industries Of Several Listed Sichuan Enterprises Rise Again

On August 18, the flood peak passed through Ya'an and Leshan of Sichuan Province. On that day, Sichuan and Chongqing successively launched the highest level flood control emergency response, of which Sichuan was the first time to start level I response in history.

On the 19th, the heavy rainfall was coming to an end, and the water level of Qingyi River Basin dropped below the warning line. The main stream and tributaries of Minjiang River and Tuojiang River were in recession. At 9:00 on the same day, Sichuan adjusted the emergency response for flood control from level I to level III.

However, it is a fait accompli fact that the losses caused by the flood crossing the line, including Shenghe resources (600392. SH), Tongwei shares (600438. SH) and Xinjin Road (000510. SZ) have caused subsidiaries to stop production and lose hundreds of millions of yuan of inventory due to the flood.

Taking Shenghe resources as an example, the company estimates that its two subsidiaries in Leshan will face losses of 390 million yuan to 520 million yuan.

The company's response said on the 19th that "some dangerous chemicals were snatched out before the disaster, and the rest of the products could not be soaked in water. The local area is in the state of water and power failure, and the specific loss amount needs to be further verified. "

On the other hand, the flood also "flows" to the secondary market. On the 19th, water conservancy stocks and seed industry stocks rose collectively, while Qianjiang water conservancy (600283. SH), Guotong shares (002205. SZ), Dayu water saving (300021. SZ) and Denghai seed industry (002041. SZ) rose.

Flood peak transit shock wave

In terms of the listed companies that have been affected, Shenghe resources has suffered the most heavy losses at present.

On the evening of the 18th flood peak crossing Leshan, the company disclosed the potential loss in time through the announcement. According to the announcement, Leshan Shenghe rare earth Co., Ltd., a subsidiary of Shenghe resources holding company, and Wutongqiao District of Sichuan Runhe catalytic new materials Co., Ltd., suffered a once-in-a-century flood on August 18, 2020. The water level of the plant is relatively deep. At present, all the plants have been shut down and all personnel have been evacuated safely.

Among them, Leshan Shenghe rare earth is located on the edge of Minjiang River, and Runhe catalysis is separated from it.

On the 18th, the water level of Minjiang River rose continuously on the day of the flood peak crossing. Leshan Giant Buddha, located in the upper reaches of Wutongqiao District, was flooded to the toe for the first time since 1949. Shenghe resources of the above two subsidiaries, unavoidable, inventory losses.

According to Shenghe resources forecast, Leshan Shenghe will lose about 240-330 million yuan of fixed assets, 20-50 million yuan of machinery and equipment, plant and other fixed assets, and 220-280 million yuan of inventory; Runhe catalyst is expected to lose 150-190 million yuan, including 120-130 million yuan of inventory and 30-60 million yuan of fixed assets such as machinery, equipment and workshops. The total expected loss value is 390 million yuan to 520 million yuan, and the inventory loss is about 260 million yuan to 320 million yuan.

"Most of the inventory has not been rescued in advance, and the local communication is not very smooth at present. The specific loss amount needs to be further counted." Shenghe resources sources said on the 19th.

In contrast, although Yongxiang polysilicon company of Tongwei Co., Ltd. is also located in Wutongqiao District of Leshan, the overall loss is relatively controllable.

The introduction of the flood situation released by the official company of Tongwei group on the 18th described in detail the scene of the flood peak crossing at that time.

On that day, the water level of Minjiang River and Yongsi River continued to rise, and the Wutong bridge in Leshan suffered a once-in-a-century flood. At 3 am, Yongxiang polycrystalline silicon, Yongxiang new materials and Yongxiang resin, a subsidiary of Yongxiang Co., Ltd., launched a level-1 emergency plan.

The scene pictures showed that at about 18:00 on that day, the water in Yongxiang polysilicon old factory was serious, and the parking vehicles in front of the door had flooded to the lower edge of the window. Until 22:00, the water level in the plant area dropped, and the production unit was normal after inspection.

"The total production capacity of Leshan polycrystalline silicon is 50000 tons. The production capacity of 20000 tons was shut down due to the flood, and the other 30000 tons of production capacity was not affected." Tongwei stock company said on the 19th that the current inventory has not been significantly affected, so it will not be devalued, and the company has no preparation for announcement and disclosure, "as for when to resume work, it needs to wait for the local government's notice."

On the evening of the 19th, two companies affiliated to Leshan Fuhao and he Zhenggang also issued the disaster announcement.

Among them, Zhenjing (603477. SH) leather production main plant area water, all stop production, is expected to resume production within 3 months. Hebang bio (603077. SH) expects that the flood will cause 350-450 million yuan of loss to the company, including 280-360 million yuan of inventory loss.

In addition, Minjiang electrochemical Co., Ltd., a subsidiary of xinjinlu (000510. SZ), located in Aba, has also been affected by flash floods recently. Nearly 50 tons of calcium carbide deflagration in water, and the production facilities are suspended, thus forcing the listed companies to purchase calcium carbide urgently.

Water conservancy and seed industry take advantage of the situation to pull up

To 19, Sichuan local heavy rainfall weather temporarily rest, the local main rivers are in recession.

The flood peak went down the river in Leshan, Yibin and Luzhou, and began to cross Chongqing on the 18th. On the 19th, some roads along the river in the central urban area of Chongqing were submerged.

According to the Ministry of water resources, on August 19 and 20, the Cuntan reservoir and the Three Gorges Reservoir in the upper reaches of the Yangtze River will have a peak discharge of about 74000 cubic meters per second, which is also the largest inflow flood since the construction of the Three Gorges reservoir.

On the other hand, the flood peak also "flows" to the capital market, pushing the water conservancy sector to go higher collectively.

On the 19th, the Three Gorges Water Conservancy (600116. SH), located in Chongqing, approached the trading limit, closing up 6.35% for the whole day. On the same day, the trading limits of Qianjiang water conservancy in Zhejiang Province, Qinglong pipe industry (002457. SZ) and Guotong Co., Ltd.

However, the Three Gorges Water Conservancy and Qianjiang water conservancy mainly focus on hydropower business. 74% of the income of the former comes from the power business, while the latter is mainly engaged in urban water supply and hydropower generation, accounting for more than 80% of the income from water supply business.

On the contrary, Qinglong pipe industry and Guotong shares still have a little bit of edge. Qinglong pipe industry has undertaken a number of national, provincial and municipal key projects, such as the south to North Water Diversion Project, and its products are used in water conservancy, electric power, urban water supply and drainage and other fields.

Guotong's main product is the stress steel cylinder concrete pipe. According to the company's positioning, "based on PCCP's main business, actively participate in the investment, construction and operation of water affairs construction, urban comprehensive pipe gallery, sponge city and other projects..."

Driven by the news, there are also seed industry stocks and some agricultural subsidiary industries, such as Denghai seed industry, whose trading limit was raised on the 19th, and Dayu water-saving project, which is based on agricultural water supply project.

In fact, since the continuous heavy rainfall in the middle and lower reaches of the Yangtze River in June, seed stocks have begun to rise more obviously.

From the beginning of August alone, the average growth rate of Shenwan planting industry plate reached 20.87%, leading all secondary industries together with agricultural comprehensive industry.

At the end of July, the Ministry of agriculture and rural areas also formulated technical opinions on post disaster recovery of planting industry in the middle and lower reaches of the Yangtze River.

In addition, the stock prices of the two pump companies changed synchronously on the same day, with the new territories pump industry (002532. SZ) trading limit, and Dayuan pump industry (603757. SH) closed up 5.87% throughout the day. Among them, household pumps and agricultural pumps account for nearly 50% of the total sales.

However, whether such pump companies or the above-mentioned water pipeline and seed industry companies can be reflected in the financial report in the future is still the key, otherwise it is still a subject speculation.

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