COFCO Biochemical (000930): Fuel Eruption Enters Countdown, Company’s Asset Integration Completes, Leader Sets Off

COFCO Biochemical (000930): Fuel Eruption Enters 淡水桑拿网 Countdown, Company’s Asset Integration Completes, Leader Sets Off

Matters Recently, the General Office of the People’s Government of Shanxi Province issued the “Notice on Promoting the Promotion and Use of Ethanol Gasoline for Vehicles”, which requires that from January 1, 2020, the use of ethanol gasoline for vehicles be promoted in the province.

Comment: It is expected that the full coverage of ethanol gasoline for automobiles will be basically achieved nationwide in 2020, and the country has already cashed in advance on September 13, 2017. The National Development and Reform Commission, the National Energy Administration, the Ministry of Finance and other 15 departments jointly issued the”Implementation Plan for Biofuel Ethanol Production and Promotion of the Use of Automotive Ethanol Gasoline”, according to the 都市夜网 plan, by 2020, full coverage of automotive ethanol gasoline will be achieved nationwide.

Last June, the Tianjin Municipal Government took the lead in issuing the “Tianjin Implementation Plan for Promoting the Use of Ethanol Gasoline in Vehicles”, which required the city to promote the use of ethanol gasoline, and it was officially implemented on September 30.

This time, the Shanxi Provincial Government issued a notice to promote the use of ethanol gasoline in vehicles across the province and extended the schedule. Pilot trials will be conducted in the Beijing-Tianjin-Hebei air pollution transmission channel involving Taiyuan, Yangquan, Changzhi, Jincheng and other cities in Shanxi Province.Promotion, the province completed the relevant transformation work at the end of 19, and will implement the province’s comprehensive promotion from January 1 next year.

According to estimates, the province’s gasoline consumption is expected to reach 375 pounds in 2020, according to the E10 (10% gasoline gasoline blended for vehicles) standard, corresponding to the fuel ethanol demand of 37.

5 nominal.

Fuel ethanol burst into the countdown, the market gap is huge, the apparent domestic consumption of gasoline in 2017 was about 1.

2.2 billion tons, assuming a 5% demand growth rate, the national gasoline consumption demand is expected to reach 1 by 2020.

At 4.1 billion tons, if full coverage of ethanol gasoline for vehicles is to be achieved nationwide, the corresponding fuel ethanol demand according to the E10 standard will exceed 1,400 tons, and the industry will enter a countdown.

The current annual output of domestic fuel ethanol is only 260 calories, and the self-sufficiency rate is less than 20%. The market gap is huge.

Ethanol gasoline has higher environmental advantages. Ethanol gasoline has higher environmental advantages. It is an important strategic emerging industry among them. It has very active strategies for replacing non-renewable energy sources such as petroleum, pollution of atmospheric smog, and pollution control of water and land resources.significance.

(1) Can replace or partially replace gasoline as engine fuel, effectively reduce the amount of gasoline, thereby partially reducing dependence on oil imports, and improve national energy security; (2) ethanol as a high-octane component of gasoline, to reconcile octaneThe value is generally above 120, which can improve the knock resistance of the ignition turbine and make the engine run more smoothly; (3) Ethanol is an aerobic fuel, which can be mixed into gasoline and can replace the gasoline oxygenating agent that pollutes the target.MTBE (Methyl Tert-Butyl Ether), meanwhile, makes combustion more sufficient, and reduces emissions of air pollutants such as particulate matter, carbon monoxide, and volatile organic compounds (VOC) by more than 1/3 on average, thereby saving energy and protecting the environment.

The integration of the company’s group assets was completed, and the leader officially set sail. For the first time, the company covered the planned buy rating. It is a domestic corn deep-processing platform company relying on COFCO Group, and has an alternative biofuel ethanol production capacity of 75.

In December last year, the company issued shares to purchase the assets of the group. The production capacity of fuel ethanol reached 135 tons, and the domestic cities accounted for nearly half of it, becoming a veritable leader in fuel ethanol.

With the continuous landing of the promotion of ethanol gasoline for automobiles nationwide, the company’s fuel ethanol business is expected to usher in a continuous outbreak.

Considering the consolidation, the company is expected to realize net profit attributable to mothers in 18-20 years.



3.1 billion, EPS0.



45 yuan, corresponding to PE30.



2x, covering the initial BUY rating for the first time.

Risks prompt fluctuations in corn prices, fluctuations in crude oil prices, cancellation of supplementary policies, promotion of automotive ethanol is not up to expectations