Hengli Petrochemical (600346): Refining-Aromatics-Polyester Integrated Project Creates Core Competitiveness Performance in 2019 Exceeds Expectations
Event: On the evening of January 17, the company issued an announcement saying that it expects a substantial net profit of 10.9 billion in 2019, an increase of 228.
After the non-recurring gains and losses, it is estimated that the net profit attributable to shareholders of listed companies will be about 1,013,000 million in 2019, which will increase by 733,686.
About 860,000, an increase of 262 every year.
Opinion: The performance reached a record high again, and the refining and aromatics giant fully set sail. The company achieved net profit attributable to the parent company 68 in the first three quarters.
1.7 billion, of which Q3 achieved a net profit of 27.
According to the announcement, the company expects to achieve a net profit of 10.9 billion, corresponding to a net profit of about 40 in Q4.
Among them, non-recurring gains and losses are about 7.
7 trillion, mainly including items such as corruption returns, Q4 realized non-net profit 33.
Refining and chemical projects are fully consolidated, and the aromatics industry chain improves the company’s profitability. In 2019, the company’s performance reached a new high. Essentially, the company’s wholly-owned Hengli 2000 / year refining and chemical integration project was preliminary in May 2019.Take the lead in full-scale production and formal commercial operations, and formally realize the construction of the entire industry chain of “crude oil-PX-PTA-filament”.
The opening of the entire industry chain will help the company to resist the impact of the transformation of the profitability of the industrial chain on the company’s performance.
Hengli Refining & Chemical Co., Ltd. is the first modern refinery of 2000 tons or more built in one time in China. It has international leading, domestic first-class technology level and device processing scale, strong single processing capability, advanced technology selection, and integrated capacity.High, and excellent and complete industrial support in power, energy, ports, terminals, tank farms, storage and transportation, etc., and comprehensive competitive advantages in operating factors such as technology, process, scale and cost are outstanding.
The refining and petrochemical project put into operation fully realized the listed company’s strategic breakthroughs in the field of scarce capacity in upstream industries such as refining and aromatics, and also significantly optimized, improving the listed company’s business integration structure and sustainable profitability.
In addition, although the prosperity of PTA and filament has declined since entering November, in review of 2019, the supply and demand pattern of PTA industry and the average spread level have further improved, and the company’s PTA business profit level has gradually increased; the company’s polyester chemical fiber business scale has also maintained relativeRelatively stable profit range.
The establishment of the company’s PTA, the polyester business is operating well, and further increased the company’s profit.
Ethylene capacity is expected to be put into production, which is expected to further increase the company’s performance. In April 2018, the Dalian Municipal Government, Changxing Island Management Committee and Hengli Group signed a tripartite investment agreement to jointly build the 150 year / ethylene project.USD, construction period is about two years. At present, relevant project approval, process package design and long-term equipment procurement have been completed.
The main raw material crushing and refining project of ethylene project and coal-to-hydrogen plant, and the finished gypsum can be used for the production of downstream polyester products of the company. After the successful construction of the project, the company 杭州夜网论坛 will further open up the upstream and downstream petrochemical industry chain and continue to stabilize the industry’s leading level.
Earnings forecast, forecast, rating and rating According to the performance forecast, the company’s 2019 performance exceeds our expectations. We raise the profit forecast for 2019 and raise the profit forecast for 2020-2021. It is expected that the company will return to its net profit in 2019-2021.The profits were 110.
The company is the first privately-owned large-scale refining and chemical enterprise in China with rapid growth in performance. We continue to be optimistic about its future development and maintain a “Buy” rating.
Risk reminders: the risk of gradual fluctuations in the industry, the risk of fluctuations in raw material prices, the risk of exchange rates, and the risk of changes in refined oil policies.