\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 346 Hengli Petrochemical Co.Ltd(600346) )
Key points
Event: the company issued the announcement of Hengli Petrochemical Co.Ltd(600346) phase VI employee stock ownership plan (Draft), and simultaneously announced the suggestive announcement of Hengli Petrochemical Co.Ltd(600346) on employees of controlling shareholders and their affiliated enterprises planning to purchase company shares through special financial products. The upper limit of the total amount of shares purchased by the employee stock ownership plan of the listed company and the shareholding plan of the group is about 9.86 billion yuan.
Comments:
The company launched an employee stock ownership plan of nearly 10 billion yuan. In this employee stock ownership plan, 1) source of funds: raise funds through the legal salary of the company’s employees, self raised funds, special financial products, etc; 2) Purchase scale: the total amount of the employee stock ownership plan is 9.86 billion yuan, and the ratio of financing funds to self raised funds is no more than 1:1, of which the upper limit of Hengli Petrochemical Co.Ltd(600346) employees’ stock purchase is 7.38 billion yuan, and the upper limit of controlling shareholders and employees of their affiliated enterprises’ stock purchase is 2.48 billion yuan. According to the closing price of 22.65 yuan / share on March 2, the upper limit of employee stock purchase of the company is 7.38 billion yuan, corresponding to 325827800 shares, accounting for about 4.63% of the total shares of the company. The total number of shares held by this ESOP and the current effective ESOP of the company shall not exceed 10% of the total share capital of the company. 3) Personnel covered: directors, supervisors and senior executives of the company; Department managers and other middle-level personnel; Highly educated employees; Employees who have been re employed for more than 1 year and ordinary employees who have retired for more than 1 year. 4) Duration, stock source and lock-in period: the duration of this ESOP is 36 months, and the lock-in period is 12 months for the transferee of the shares repurchased by the company through block trading and secondary market purchase.
The purchase scale of nearly 10 billion yuan shows the company’s confidence in development and injects vitality into the company’s growth. This ESOP is conducive to enriching the salary system of employees, establishing and improving the benefit sharing mechanism between workers and owners, and realizing the consistency of the interests of the company, shareholders and employees; Further improve the corporate governance structure and improve the company’s long-term and effective incentive and restraint mechanism; Effectively mobilize the enthusiasm and creativity of managers and employees, attract and retain excellent management talents and business backbone, and improve the cohesion of employees and the competitiveness of the company.
The reserves of projects under construction are sufficient, and the company has high growth Hengli Petrochemical Co.Ltd(600346) (Huizhou) 5 million T / a PTA project is planned to be completed and put into operation in the second quarter of 2022. After the project reaches production and efficiency, it will achieve annual sales of more than 21.2 billion yuan and total annual profit of about 1.2 billion yuan; After the project with an annual output of 800000 tons of functional polyester film and functional plastics reaches production and efficiency, it is expected to realize an average annual total profit of about 2.9 billion yuan; The annual output of 450000 tons of PBS biodegradable plastics project of Kanghui new materials, a subsidiary, has a broad demand prospect due to the introduction of the “plastic restriction order”; The 1.5 million T / a green multifunctional textile new material project invested by Jiangsu Xuanda polymer materials Co., Ltd., a subsidiary company, will further enhance the comprehensive competitive strength of the whole polyester chemical fiber industry chain of the company; Market layout of degradable plastics of the supporting company for the construction of adipic acid project with an annual output of 300000 tons; On December 26, 2021, the equipment procurement signing ceremony of Hengli Petrochemical Co.Ltd(600346) wet diaphragm production line was held in Hengli (Suzhou) Industrial Park. The subsidiary Kanghui new materials will introduce 12 wet lithium battery diaphragm production lines from Zhipu Machinery Co., Ltd. and Qingdao Zhongke Hualian new materials Co., Ltd., with an annual capacity of 1.6 billion square meters, marking Hengli Petrochemical Co.Ltd(600346) entering the field of lithium diaphragm, Overweight chemical new energy materials market. The company will continue to contribute to performance increment after sufficient projects under construction are put into operation.
Upgrade to the “platform + new materials” mode, with significant scale advantages. After years of development, Hengli Petrochemical Co.Ltd(600346) has efficiently built a strong “big chemical” platform, and completed four energy production clusters: 20 million T / a refining and chemical integration project, 4.5 million T / a aromatics project, 1.5 million T / a world’s largest monomer ethylene project and five sets of PTA units with a total of 11.6 million T / A. The company accelerates the layout of high-end new materials in the downstream, which will make full use of the company’s rich “chemical raw material warehouse” in the upstream. At the same time, the output of raw material products integrated with “oil and coal” in the upstream will continue to enable high value-added products in the downstream.
Accelerate the transformation and layout of new materials. At the current time point, it has the characteristics of “undervalued value + high growth”. Under the background of “carbon neutralization”, the company is currently in the stage of accelerating the extension to the downstream high value-added field. We believe that as the leader of private refining and chemical industry, the performance of its original business is expected to continue to shine. At the same time, the perfect layout of the downstream industrial chain will also bring observable performance increment and reduce performance volatility, and it will still have high growth in the future. From the perspective of valuation, as of March 3, 2022, the company’s 22-year dynamic PE was only 7 times, and the valuation was at the bottom of history. We believe that at the current time point, the company has the characteristics of “undervalued value + high growth” and has high investment value.
Profit forecast, valuation and rating: we maintain the company’s profit forecast for 21-23 years. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 17.108/21.231/23.462 billion yuan respectively, equivalent to EPS of 2.43/3.02/3.33 yuan / share respectively, maintaining the “buy” rating.
Risk tip: the progress of new production capacity is less than expected, the global economic recovery is less than expected, the international crude oil price fluctuates, and environmental protection policy risks.
