Air Products and Chemicals’ new business wins
On November 20, 2017, Air Products and Chemicals (APD) announced that it won a long-term contract with a leading manufacturer in Guangdong Province, China. It will supply oxygen and nitrogen. However, Air Products and Chemicals didn’t disclose the financial terms of the new contract. According to the new contract, Air Products and Chemicals will construct two new plants to generate oxygen and nitrogen. The new plants are expected to be in operation in 2018.
Choon Seong, Air Products and Chemicals’ industrial gases president in China President, said, “We are honored to have our important global customer’s continued trust in Air Products’ capabilities to support their further expansion. This contract demonstrates our industry expertise and their confidence in our quality and reliable supply. We are truly happy to have the opportunity to help our valued customers meet their productivity, quality and sustainability goals. In line with China’s 13th Five-Year Plan and Made in China 2025 strategy, the new investment and capacity expansion will give Air Products an even stronger position to supply the strategic high-tech materials industry in the important Pearl River Delta region.”
Air Products and Chemicals stock
Air Products and Chemicals’ stock price remained flat for the week ending November 24, 2017. Air Products and Chemicals was trading 7.10% above the 100-day moving average price of $150.78. On a year-to-date basis, the stock has risen 12.30%. However, analysts are still bullish on the stock and have recommended a target price of $172.10 over the next 12 months. It implies a return potential of 6.50% over the closing price as of November 24, 2017. Air Products and Chemicals’ 14-day relative strength index of 63 indicates that the stock isn’t overbought or oversold.
Investors can hold Air Products and Chemicals indirectly by investing in the Materials Select Sector SPDR Fund (XLB). XLB has invested 5.50% of its portfolio in Air Products and Chemicals. The fund has also invested in DowDuPont (DWDP), Monsanto (MON), and Praxair (PX) with weights of 23.10%, 8.0%, and 6.80%, respectively, as of November 24, 2017.