Satellite Chemistry (002648)
event:
On December 29, 2021, the company announced that the company signed the investment project cooperation agreement with the Management Committee of Jiangsu Lianyungang Port Co.Ltd(601008) Xuwei new area, and planned to invest 15 billion yuan to build a green chemical new material industrial park project in Xuwei new area, which mainly includes an annual output of 200000 tons of ethanolamine, 800000 tons of polystyrene and 100000 tons α- Olefin and supporting Poe, 750000 T / a carbonate series production unit and related supporting projects.
Key investment points:
Relying on the upstream large chemical platform, build a green new material industry chain
The company is committed to building an integrated industrial chain of new chemical materials for low-carbon raw materials. At present, it has a capacity of 900000 tons of propane dehydrogenation to propylene and 1.25 million tons of ethane cracking to ethylene, and has built a rich raw material warehouse in the upstream. At the same time, the company is actively building a green new material industrial chain, and plans to invest 15 billion yuan to build a green chemical new material industrial park project. The project will be constructed in three phases. In the first phase, two sets of 150000 T / a carbonate and electrolyte additive units and two sets of 200000 t / a polystyrene units will be constructed; Phase II Construction: 100000 t / A α- Olefin and Poe unit, 150000 T / a carbonate series unit; In phase III, 400000 T / a polystyrene unit and 300000 t / a carbonate series unit will be constructed. The project is planned to start construction before March 30, 2022, and the phase III project will be completed and put into operation in December 2027. The construction of the new material project will further process the current and phase II products of C2 project and effectively improve the added value of products. Polystyrene takes styrene, the phase II product of C2 project, as the raw material. In 2020, China’s dependence on polystyrene imports will reach 31.13%, which can be effectively replaced by imports after being put into operation; Carbonate and ethanolamine take the existing ethylene oxide as raw materials, among which ethanolamine can be widely used in washing products, medicine, pesticides and other fields; Poe is olefin and α- The elastomer obtained by random copolymerization of olefins has excellent performance and can be widely used in photovoltaic, auto parts, foaming materials, wires and cables and other fields. At present, Chinese enterprises have not realized industrialization. With the planned production capacity put into operation, the company’s profitability and growth will continue to improve.
Under the background of double carbon, the company actively distributes the new energy field
Under the background of carbon peak and carbon neutralization, the company actively distributes the new energy field. On the one hand, the company makes use of the surplus hydrogen in the production process to actively develop the hydrogen energy business. At present, the company’s 900000 ton PDH unit can produce 72000 tons of hydrogen by-product, Jiangsu Lianyungang Port Co.Ltd(601008) C2 project can produce 70000 tons of hydrogen by-product in the first phase. When the second phase of C2 project and 800000 ton PDH unit are put into operation, the company’s hydrogen output will reach nearly 300000 tons, which is expected to become a major hydrogen supplier in the Yangtze River Delta, And China’s surplus hydrogen source supply leader. At the same time, the company has planned a capacity of 750000 T / a carbonate, which is the main solvent of lithium battery electrolyte. After the completion of the project, the company will become one of the electrolyte solvent manufacturers with the most complete industrial chain, the most complete products and the cleanest process in China. Carbonate takes ethylene oxide and carbon dioxide as raw materials. 750000 tons / year of carbonate can also consume 375000 tons of carbon dioxide every year, so as to achieve real cleaner production. The company’s active layout in the field of new energy is not only in line with the national policy guidance, but also will further expand the company’s business scope and bring new growth points to the company.
C2 project is in stable operation in phase I and the unit in phase II will be put into operation soon
Since the first phase of the company’s Jiangsu Lianyungang Port Co.Ltd(601008) C2 project was put into operation on May 20, 2021, it has operated well and continuously contributed to the performance increment of the company. In 2021h1, C2 business achieved a revenue of 1.532 billion yuan, a gross profit of 560 million yuan and a gross profit margin of 36.51%, showing a high profit level. The first stage mainly includes a set of 400000 T / a HDPE unit, two sets of 720000 T / a EO / EG co production units, and a set of 250000 T / a polyether macromonomer unit, of which the polyether macromonomer was put into operation in early October 2021. At the same time, the company actively carries out phase II project construction, and the main units include 1.25 million T / a ethylene, 400000 T / a HDPE, 730000 T / a ethylene oxide, 600000 T / a styrene and 250000 T / a polyether macromonomer. Among them, ethylene, HDPE, ethylene oxide and styrene are expected to be completed and put into trial production in the first half of 2022; Polyether macromonomer is expected to be completed and put into operation in the second half of 2022. With the continuous promotion of C2 project, the company will enter a high-speed development stage, and C2 project will also help the company’s performance to a new height.
The profit forecast and investment rating predict that the net profit attributable to the parent company in 2021, 2022 and 2023 will be RMB 6.503 billion, RMB 8.709 billion and RMB 10.314 billion respectively, and the EPS will be RMB 3.78, 5.06 and 6.00/share, corresponding to 10, 8 and 7 times of PE, maintaining the “buy” rating
The risk indicates that the construction progress of new projects is slow; Risk of shutdown of the plant due to force majeure; Price fluctuation of raw materials; Changes in environmental protection policies; Risk of deterioration of China US relations.
