\u3000\u3000 Hengli Petrochemical Co.Ltd(600346) (600346)
Event:
On January 26, 2022, the company announced that its subsidiary Hengli Petrochemical Co.Ltd(600346) (Dalian) new materials technology Co., Ltd. plans to invest 19.988 billion yuan to build a 1.6 million T / a high-performance resin and new materials project; It is planned to invest 4 billion yuan to build 2.6 million T / a high-performance polyester project, and the construction period of the project is 18 months.
In December 26, 2021, the official account of Hengli Petrochemical Co.Ltd(600346) WeChat released information. The company’s new Kang Hui material will introduce 12 Japanese wet processing lithium battery separator production lines, Japan Zhi Pu Machinery Co. and Qingdao Zhonghua Hualian new material Limited by Share Ltd, with an annual capacity of 1 billion 600 million square meters.
Key investment points:
Accelerate the layout of downstream high-end chemical new materials, and the company has started a new round of growth
After years of development, the company has efficiently built and completed four capacity clusters: 20 million T / a refining and chemical integration project, 5 million T / a modern coal chemical plant, 1.5 million T / a global monomer largest ethylene project and 5 sets of PTA plants with the largest monomer in the industry, totaling 11.6 million t / A, and built a strong “big chemical” platform. In order to make full use of the rich raw material product output of the upstream “oil coal” integration, and based on the continuous empowerment of its own large chemical platform and the accumulation of new material development for many years, the company aims at the bottleneck and shortage of new material demand gap caused by the rapid development of medium Shanxi Guoxin Energy Corporation Limited(600617) , new consumption and hard science and technology, and plans to invest 19.988 billion yuan to build a 1.6 million T / a high-performance resin and new material project. The project products mainly include 231800 T / a bisphenol A, 131200 T / a isopropanol, 130000 T / a ethylene oxide, 260000 T / a PC, 200000 t / a carbonate series, 300000 t / a ABS, 75000 T / a GPPS, 75000 T / a hips, 160500 T / a ethanolamine, 72000 t / a PDO, 60000 T / a PTMEG, etc, After being put into operation, it is expected to realize an average annual total profit of 9.152 billion yuan and a net profit of 6.864 billion yuan. Compared with traditional chemicals, ethanolamine, PC, DMC, ABS and other new materials have higher added value; At the same time, the implementation of China’s “double carbon” strategy, the transformation and upgrading of manufacturing industry and the change of consumption structure will promote the rapid development of China’s renewable energy, new energy vehicles, 5g technology, consumer electronics and integrated circuits, and will inevitably drive the increase of the demand for relevant new chemical materials, with a vast market space in the future. Through the “top-down” layout of the downstream high-end chemical new material industry chain, the company will continue to improve its profitability, enhance growth certainty, and gradually grow into a world-class platform type R & D and manufacturing enterprise of new chemical materials.
The 2.6 million T / a high-performance polyester project has been implemented, and the products continue to develop towards high-end differentiation
As a leading polyester enterprise in China, the company is committed to the high-end differentiated development of products. In order to better adapt to the market demand changes of new chemical materials and extend the vertical layout of differentiated fiber, functional film, high-performance industrial silk and polyester new material industry, the company plans to invest 4 billion yuan to build a high-performance polyester project with an annual output of 2.6 million tons. The products of the project mainly include 1.2 million T / a industrial silk polyester chips, 900000 T / a film grade polyester chips, 300000 t / a super bright polyester chips, 100000 t / a film grade masterbatch polyester chips and 100000 t / a photovoltaic material polyester chips. After all put into operation, it is expected to realize a total profit of 990 million yuan and a net profit of 842 million yuan. The construction of the project will effectively expand the production capacity and scale of the company’s Polyester sector. The layout of high-end polyester production capacity such as industrial silk level and photovoltaic material level will provide strong support for the rapid development of downstream MLCC release base film, optical film, photovoltaic film and other high-end films. In the future, the company’s polyester industry will continue to develop towards high-end differentiation and continuously enhance its core competitiveness.
Enter the field of lithium diaphragm and increase the market of new energy materials
After nearly a decade of industrial technology accumulation and rapid business development, Kanghui new materials, a wholly-owned subsidiary, has continuously improved its industrial competitiveness in the field of medium and high-end functional films and new plastic materials, ranking among the first-class level in China. With the rapid development of new energy vehicles and energy storage, the demand for lithium battery has increased rapidly. Relying on the advantages of upstream raw materials and the technical advantages accumulated in the film field for many years, the company has actively entered the field of lithium battery diaphragm. On December 26, 2021, the signing ceremony for equipment procurement of the company’s wet diaphragm production line was held in Hengli (Suzhou) Industrial Park. According to the agreement, Kanghui new materials will introduce 12 wet lithium battery diaphragm production lines from Japan Zhipu Machinery Co., Ltd. and Qingdao Zhongke Hualian new materials Co., Ltd., with an annual capacity of 1.6 billion square meters. The construction of lithium diaphragm capacity will not only greatly alleviate the supply and demand gap of lithium diaphragm in China, but also further expand the layout of the company in the downstream new energy material market.
New projects will continue to contribute to performance increment, and the company shows high growth
In the next three years, Hengli Petrochemical Co.Ltd(600346) new projects will continue to contribute to the performance increment of the company, with strong growth certainty. Among them, 450000 T / a degradable plastics are expected to be put into operation in the middle of 2022. After the project is completed, the total annual profit is expected to be 2.02 billion yuan. From 2023 to 2024, the annual output of 800000 tons of functional polyester film / functional plastic project, Xuanda 1.5 million tons / year green multi-functional textile new material project and 300000 tons / year adipic acid new material supporting project will also be completed successively. After the project reaches production and efficiency, it is expected to realize the total annual profits of 2.91 billion yuan, 1.3 billion yuan and 1.26 billion yuan respectively. At the same time, considering the performance contribution of the 1.6 million T / a high-performance resin and new material project and the 2.6 million T / a high-performance polyester project, the company has announced that the construction project is expected to bring a total profit increment of 17.63 billion yuan, and the company will show high growth in the future. (Note: the total profit and net profit of the project are from the predicted value in the company’s announcement)
The profit forecast and investment rating predict that the net profit attributable to the parent company in 2021, 2022 and 2023 will be 16.711 billion yuan, 20.632 billion yuan and 25.093 billion yuan respectively, and the EPS will be 2.37, 2.93 and 3.56 yuan / share. The corresponding PE will be 10, 8 and 7 times, giving a “buy” rating.
Risk warning: crude oil price fluctuates sharply; Downstream demand is lower than expected; The progress of the new project is less than expected; Economic fluctuation risk; exchange-rate risks.
