Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426)
Key investment points
Event: the company issued the restricted stock incentive plan (Draft) for 2021 on December 22, 2021, and planned to grant 13.2 million restricted shares to the incentive object, accounting for 0.625% of the total share capital of the company at the time of announcement of the draft plan. A total of 190 incentive objects were granted for the first time, and the grant price was 17.93 yuan / share.
comment:
Equity incentive shows development confidence, and the improvement of revenue scale shows growth. The company’s assessment of the lifting of restrictions on the sale of equity incentive is conducted in two aspects: the performance of the company and the performance of the incentive object at the individual level. Company level performance assessment, including operating income growth rate and pre tax dividend per share, The growth rate of operating revenue is based on the revenue in 2020 (RMB 13.115 billion), and the growth rate of revenue in 2022 / 2023 / 2024 is not less than 80% / 85% / 160%, and not less than the “chemical raw materials and chemical products manufacturing” under the “manufacturing” category of the industry classification of Listed Companies in the CSRC Average level of all A-share listed companies); The pre tax dividend per share reflects the company’s return to investors, and the combination of the two forms a perfect index system. For individual performance appraisal of incentive objects, the plan also sets up a strict performance appraisal system for individuals, covering 11 senior executives, 179 key personnel of core technology, operation, management and skills, a total of 190; The evaluation results are determined according to the individual performance evaluation indicators, which are divided into four grades: excellent / good / average / poor, with a corresponding coefficient of 1.0/1.0/0.7/0, and the individual’s actual sales restriction lifted in the current year = standard coefficient × The individual plans to lift the sales restriction limit in the current year. We believe that the setting of assessment objectives by the company is conducive to strengthening the company’s operation and improving the speed of project construction, so as to maximize the interests of all shareholders and highlight the company’s confidence in long-term growth.
DMC customers and sales increased rapidly, and the electrolyte solvent layout was overweight in the long term. According to Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) new energy official account, the company’s 300 thousand ton carbon ester two methyl ester plant was successfully launched in October 3rd. In October 8th, the electronic grade carbon ester two methyl ester product was officially put into the market. After more than one month’s marketing and docking, the cooperative customers of Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) electrolyte continued to increase. As of November 12th, 24 cooperative enterprises including Guangzhou Tinci Materials Technology Co.Ltd(002709) were developed. On November 19, the daily delivery volume of carbon ester products exceeded 1650 tons. In addition, according to Dezhou development and Reform Commission, the company plans a high-end solvent project to build a 600000 T / a dimethyl carbonate unit with dimethyl oxalate as raw material and advanced catalytic decarbonization technology; With dimethyl carbonate and ethanol as raw materials, a 300000 t / a methyl ethyl carbonate unit is built by using the transesterification reaction technology of dimethyl carbonate and ethanol, with a by-product of 50000 T / a diethyl carbonate. After the unit is completed and put into operation, the annual output of dimethyl carbonate is 300000 tons, methyl ethyl carbonate is 300000 tons, and the annual by-product of diethyl carbonate is 50000 tons. At that time, the DMC capacity of the company will be expanded to 600000 tons, the solvent varieties will also be expanded to methyl ethyl carbonate and diethyl carbonate, and the solvent product matrix will be further improved. Relying on the advantages of engineering capability, the company continues to upgrade the industrial chain, or will benefit from the rapid development of new energy vehicles and effectively improve its profitability.
With the multi-point flowering layout of new materials, the Jingzhou project is progressing smoothly. In terms of new materials, 1) in terms of new nylon materials, Amide and nylon new material project (300000 t / a) caprolactam and supporting devices have opened the process and entered the trial production stage; 200000 t nylon 6 chips and other production devices are currently under construction and are expected to be put into operation in the first half of next year; in addition, according to Dezhou development and Reform Commission, the company plans to build a high-end new material project of nylon 66. After being put into operation, the production capacity of nylon 66, adipic acid and nitric acid will be 80000 T / A, 148000 T / A and 180000 T / a respectively Tons / year, with a total investment of 3.078 billion yuan. It is planned to start construction within this year and in 2023; 2) PBAT: according to the Dezhou Municipal Development and Reform Commission, the company plans to build a 120000 T / a PBAT degradable plastic project. After being put into operation, the production capacity of PBAT degradable plastic, BDO and NMP will be 120000 T / A, 180000 T / A and 50000 T / a respectively, with a total investment of 4.428 billion yuan. It is planned to start within the year and put into operation in 2023. The company has a cost advantage in entering the PBAT industry. The raw materials of PBAT are PTA, BDO and adipic acid. The company has put into operation 166600 tons of adipic acid in February. At present, the product scale has reached 330000 tons, which is at the leading level in China; PTA has been in the situation of oversupply for a long time, equipped with another raw material BDO and extended adipic acid to enter the PBAT industry, so as to continue to give full play to the cost advantage of industrial chain integration. Jingzhou project, The company’s 70% holding subsidiary Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (Jingzhou) Co., Ltd. plans to invest 5.924 billion and 5.604 billion for “Park gas power platform project” and “synthetic gas comprehensive utilization project” 。 After the project is put into operation, it is expected to achieve a revenue of 11.138 billion yuan and a total profit of 1.326 billion yuan. At present, the project is progressing smoothly. At present, the review meeting for the energy evaluation of the power platform of the project has been passed, the agreement on urea index has been signed, and the calibration of the design institute has been completed. According to Jingzhou news network, Jingzhou City proposes to deeply connect with the “51020” modern industrial system of the province, accelerate the construction of new energy and new materials industrial base, and will fully support the construction of relevant projects of Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) Jingzhou base to ensure that the phase I project will be put into operation smoothly before June 2023.
Risk warning: risk of large macroeconomic fluctuation; Price fluctuation risk of raw materials and products; Risk of capacity release less than expected; The deterioration of epidemic situation affects the demand risk; Policy limits capacity risk.
Profit forecast: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 7.607 billion, RMB 7.947 billion and RMB 8.331 billion respectively, and EPS will be RMB 3.60, RMB 3.76 and RMB 3.94 respectively, maintaining the “buy” rating.
