\u3000\u3000 China National Chemical Engineering Co.Ltd(601117) (601117)
In January, newly signed orders increased by 83%, and the group’s revenue and performance achieved a good start. The company announced that the newly signed contract amount in January 2022 was 51.2 billion yuan, a significant increase of 83% year-on-year, creating the highest value of newly signed orders in a single month in recent two years, accounting for 19% of the newly signed contract amount of last year. Among them, 49.1 billion yuan was contracted for construction projects, and 35.7/112/2 billion yuan was newly signed for chemical / Infrastructure / environmental governance, accounting for 73% / 23% / 4% of the project contracts respectively. Survey and design / industrial and new material sales / modern services in non engineering contracts are newly signed with RMB 4 / 13 / 300 million respectively. Geographically, the newly signed contracts at home were 43.5 billion yuan, an increase of 81% year-on-year, and the newly signed contracts abroad were 7.6 billion yuan, an increase of 95% year-on-year. According to the website of SASAC, China National Chemical Engineering Co.Ltd(601117) Engineering Group’s operating revenue / net profit in January was 13.44/470 billion yuan respectively, an increase of 39% / 23% over the same period last year. All major economic indicators reached a new high and achieved a “good start” in the first month.
The bulk raw materials required for the production of adiponitrile project have entered the site, and the sales work is progressing smoothly as a whole. The company disclosed on the investor interaction platform that on January 14, the company’s Shandong Zibo adiponitrile project entered the staggered period of CCCC and trial production, and the bulk chemical raw materials required for production have entered the site. The design capacity of phase I of the project is 200000 tons. After process optimization, the maximum capacity is expected to reach 300000 tons. This year’s sales work is progressing smoothly and in line with the company’s expectations. According to the official wechat of Tianchen Qixiang new materials company, On February 16, the Secretary of Zibo Municipal Party committee and the mayor visited the project site and stressed: “Enterprises should further sort out and analyze the technical process requirements for project commissioning, putting into operation and achieving efficiency. On the basis of meeting the specifications, they should speed up and speed up the progress. Relevant departments should set up special classes to comprehensively improve the quality and efficiency of administrative services such as administrative examination and approval and formalities handling, and provide round the clock service support for the project.” It is expected that the project is expected to be officially put into operation as soon as possible after the subsequent remaining approval procedures are completed.
The announcement plans to invest in the construction of Fujian Quangang propylene oxide and Yichang new materials innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) park. The technical strength of new materials is confirmed again, and there is great potential for sustainable output in the future. The company recently announced that its wholly-owned subsidiary Tianchen company plans to invest about 600 million yuan to jointly set up a project company with strategic investors and employee follow-up investment platform to invest in Fujian Quangang 600000 T / a propylene oxide project. The estimated investment in phase I is about 3.7 billion yuan, mainly including 300000 t / a propylene oxide plant and supporting facilities × 450000 T / a hydrogen peroxide plant, etc. In addition, it was also announced that Wuhuan company, a wholly-owned subsidiary, jointly established a project company with strategic investors and employee follow-up investment platform to invest in the phase I project of “China Chemical Yichang new materials innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) Park project”. It is preliminarily estimated that the required project capital is about 3.8 billion yuan, mainly including high-end phosphorus based materials, new fluorine materials, high-end bio based new materials and high-end chemicals New material innovation base and park infrastructure, etc. The two major projects have once again confirmed the company’s technical advantages and continuous realization potential in new materials. According to the annual report, the company is also focusing on a batch of new materials and new energy technologies such as Poe, environmental protection catalyst, ASA resin, polyimide, flame retardant nylon, nylon 12, waste gasification, hydrogen energy storage and transportation, and has great potential for continuous “technology + industry” output in the future.
Investment suggestion: it is estimated that the net profit attributable to the parent company will be 4.2/64/8.2 billion yuan from 2021 to 2023, with a year-on-year increase of 15% / 54% / 27%, EPS of 0.69/1.06/1.34 yuan respectively, and the corresponding PE of the current stock price is 16 / 10 / 8 times respectively. The company has great potential for industrial transformation of new chemical materials and maintains the “buy” rating.
Risk warning: repeated epidemic risk, overseas project implementation risk, industrial project production performance does not meet expectations, and gross profit margin decline risk.
