04/20/2021

Hengyi Petrochemical (000703) Interim Report Performance Review: End-to-end extension of the entire industry chain performance as expected

Hengyi Petrochemical (000703) Interim Report Performance Review: End-to-end extension of the entire industry chain performance as expected

The event company released its 2019 interim report and achieved operating income of 417.

29 ppm, a decrease of 3 per year.

55%; Net profit attributable to shareholders of listed companies.

77 ppm, a ten-year increase2.

94%; net profit attributable to shareholders of listed companies10.

72 ppm, an increase of 10 in ten years.

12%; basic profit income is 0.

45 yuan.

Think the company’s performance is in line with expectations.

The initial profit grew steadily, and the decline in revenue was mainly due to the decline in trade income.

The company’s polyester product production and sales boomed and production and sales increased.

In the first half of the year, oil prices rose steadily, and the price support that the cost side brought to the polyester industry chain was conducive to the growth of product demand and profitability in the industry chain.

Pioneer PTA product price spread increased, PTA income 83.

55 trillion, an increase of 44 over the same period last year.

10%; polyester revenue 178.

49 trillion, an increase of 43 over the same period last year.

08%; total revenue from main business products was 262.

40,000 yuan, an increase of 43 over the same period last year.

40%.

Trade income 152.

44 trillion, a decrease of 38 compared with the same period last year.

37%.

In the first half of the year, the company realized the operational advantages of integrated industrial chain, the continued PTA boom cycle and the 杭州桑拿养生会所 continuous improvement of the company’s competitiveness. The company’s PTA net profit increased compared with the same period in 2018.

The Brunei PMB petrochemical project is in the trial phase.

The company’s latest announcement “PMB petrochemical project” has completed engineering construction, equipment installation and commissioning, and all devices have been transferred to the joint test phase.

The new project will open up the upstream PX industry chain, solve the company’s PTA and other product raw material substitutions, and play a positive role in reducing the company’s future production costs and opening up the company’s upstream and downstream industry chains.

The expansion of the caprolactam project was completed.

At present, the “40-year / year Caprolactam Capacity Expansion Project” invested by the 天津夜网 subsidiary has been completed and officially put into operation.

So far, the company’s caprolactam production capacity has reached 40 mg / year.

The operation of the project will increase the company’s caprolactam product capacity and output, reduce the unit operating cost and unit production cost of caprolactam; promote the optimization of caprolactam product structure, expand the market space of high-end products, and enhance the market competitiveness of caprolactam products.

Endogenous extension promotes the competitiveness of the polyester industry.

The company expanded its production through mergers and acquisitions integration, new construction and other methods, which has obvious advantages in production capacity.

The first phase of the Jiaxing Yipeng Phase II project has been formally completed and put into operation, supporting an increase of 25 through the separation of functional boutique FDY; through its wholly-owned subsidiary Suqian Yida, all assets under the name of Jiangsu Xiangsheng High-tech Materials Co., Ltd.The total project capacity is 40 tons.

In addition, the company acquired 100% equity of Hangzhou Yicheng held by the controlling shareholder through cash payment.

The company is a private enterprise giant in the entire upstream and downstream industry chain of domestic PX, PTA and polyester fiber (PET). The company holds a PTA production capacity of 1,350 microns / year, a polyester filament production capacity of 510 pounds per year, and a polyester staple fiber production capacity of 80 per day.For injection, the production capacity of polyester bottle flakes is 150 inches / year, and the production capacity of caprolactam is 40 inches / year.

The peak period of domestic PTA and CPL production has passed, with limited supplementary capacity. Through the continuous advancement of supply-side reforms, meanwhile, environmental protection policies are becoming more severe, and the impact of bans on the import of recycled chemical fiber. We believe that PTA demand is still good.

The company has significant advantages in PTA production cost and outstanding right to speak.

With the commissioning of the Brunei project, the company’s future industrial chain integration will be more complete. The company will form a dual-industry chain competition pattern of “crude oil-PX-PTA-polyester” and “crude oil-benzene-CPL-nylon”, and is optimistic about the company’s future development.Give “Buy” rating.

Risk Warning: Expansion of New Projects Does Not Meet Expectations