\u3000\u3000 Hengli Petrochemical Co.Ltd(600346) (600346)
Events
On January 26, 2022, Hengli Petrochemical Co.Ltd(600346) announced 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 project products include bisphenol A, isopropanol, ethylene oxide, polycarbonate, electronic grade DMC (including EC, EMC and DEC), ABS, GPPS, hips, ethanolamine, PDO, PTMEG and polyester chips. The total investment is 23.989 billion yuan and the construction period is 18 months.
Business analysis
Continue to promote deep processing and promote the secondary growth curve of the company. The 1.6 million T / a high-performance resin and new material project is expected to further improve the layout of the company’s industrial chain. Among them, the increase in terminal demand for polycarbonate, electronic grade DMC, ABS and other products mainly comes from the new energy and new material market. With the promotion of the global “double carbon” policy, the terminal demand is expected to continue to maintain a high boom. At the same time, the deep processing layout is expected to further increase the added value of products, which is compared with the new energy material enterprises with a single link, Hengli Petrochemical Co.Ltd(600346) the integrated layout of the whole industrial chain has obvious cost advantages and comprehensive competitiveness.
We will lay out lithium battery diaphragms and continue to promote the layout of new energy materials. Hengli Petrochemical Co.Ltd(600346) has been deeply engaged in the production of high-end films for many years, including various optical films and photovoltaic films involved in the lithium battery and photovoltaic industry chain. In December 2021, Kanghui new material, a wholly-owned subsidiary of the company, signed an agreement with Zhipu and Zhongke Hualian of Japan. Kanghui new material will introduce 12 wet lithium battery diaphragm production lines from the above two companies, with an annual capacity of 1.6 billion square meters after putting into operation. Hengli Petrochemical Co.Ltd(600346) the layout of lithium diaphragm market is expected to promote the layout of the company in the new energy and new material industry chain and enrich the layout of membrane products.
Investment advice
We estimate that Hengli Petrochemical Co.Ltd(600346) the net profit from 2021 to 2023 will be 15.9/193.5/25.5 billion yuan, corresponding to EPS of 2.3/2.7/3.6 yuan. Due to the influence of macro factors, the company’s performance may be under pressure in 2022, but the promotion of large-scale deep processing projects is expected to further grow and open up space in 2023-2024. We will give a net profit of 20 times PE in 2023 and a target price of 71.4 yuan, maintaining the “buy” rating.
Risk tips
1. Risk of one-way large-scale decline in crude oil; 2. Serious terminal demand and deteriorating demand 3 Geopolitical risk 4 The construction progress of the project is less than expected Risk of large fluctuation of US dollar exchange rate 6 Other force majeure effects
