DGC [BUY +20.3%] - Capitalizing on China’s phosphorus capacity reduction - Update
  • 2021-08-10T20:27:56
  • Company Research
We maintain our BUY rating and increase our TP by 42% owing to our more positive view on DGC’s phosphorus business prospects following China’s accelerated capacity reduction in this industry as part of the country’s long-term plan. Per our industry sources, China’s production capacity utilization has halved YTD due to China’s natural resource and environment protection priorities as well as its power shortage. This development has boosted phosphorus chemical prices