\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 117 China National Chemical Engineering Co.Ltd(601117) )
From January to February, new orders and revenue grew strongly. The company announced that the newly signed contract amount from January to February 2022 was 76.7 billion yuan, with a significant increase of 88% year-on-year. The growth rate increased by 4.6 PCT compared with the previous month, continuing the trend of high growth. Among them, 73.4 billion yuan was contracted for construction projects, and 52.9/18.2/2.3 billion yuan was newly signed for chemical / Infrastructure / environmental treatment, accounting for 72% / 25% / 3% of the project contracts respectively. Survey and design / industrial and new material sales / modern services in non engineering contracts were newly signed with RMB 600 million, RMB 18 million and RMB 800 million respectively. In terms of regions, the newly signed contracts in China were 67.2 billion yuan, an increase of 84% at the same time; Overseas new contracts amounted to 9.6 billion yuan, a significant increase of 118% year-on-year. The overseas business environment has improved significantly since the beginning of the year. In February, the newly signed contracts were 25.6 billion yuan, an increase of 97% over the same month, 14.4 PCT faster than that in January. Among them, the newly signed orders for chemical / infrastructure projects were 17.2 billion yuan, accounting for 71% / 29% of the total engineering orders in a single month, with a month on month change of – 1.7 / + 6.2 PCT respectively. From January to February 2022, the company achieved a total operating revenue of 23.9 billion yuan, an increase of 58% at the same time, maintaining a strong growth momentum.
The three major projects of adiponectin, aerogel and PBAT are progressing smoothly, and the new material business transformation continues to advance. According to the announcement: 1) Tianchen Qixiang adiponitrile project has entered the staggered period of intermediate delivery and trial production, and the bulk chemical raw materials required for production have entered the site. It is expected that qualified acrylonitrile products will be produced in the middle of March this year, qualified hexanediamine products are expected to be produced by the end of March, and qualified hexanedionitrile products are expected to be produced in the first ten days of April. The series of products include hexamethylene diamine, nylon 66 and its by-products. In terms of product sales, we focus on integrating the downstream customer resources of hexamethylene diamine. At present, we have carried out strategic cooperation with more than 10 customers, and cultivated the downstream potential market and customers of nylon 66, including users of modification, spinning and so on. 2) Hua Lu new material aerogel project was successfully launched in February 27th this year. At present, the first batch of qualified silicon-based nano aerogel composite insulation felt products has been produced, and has signed a cooperation agreement with more than thirty enterprises. The initial sales of aerogel products are about 15 thousand and 500 cubic meters. 3) The phase I PBAT project with an annual output of 100000 tons invested and constructed by East China Engineering Science And Technology Co.Ltd(002140) under the company has been successfully mechanically completed and has entered the stage of start-up and trial production as a whole. In addition, the company recently announced that it plans to invest in the construction of Fujian Quangang propylene oxide and Yichang new material innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) park. The technical strength of new materials is confirmed again, and it is expected to continue to be exported in the future, with great potential to build an industrial platform for high-end chemical new material technology.
At present, the oil price is running at a high level, and the policy is clear that the energy consumption of raw materials is not included in the total energy control, which is conducive to the development of coal chemical industry. As the leader of coal chemical engineering, the company is expected to benefit. Based on the national conditions of last year, the central conference pointed out that the total amount of coal should be controlled scientifically, and the development of renewable energy should be based on the national conditions of the coal industry. At present, due to international and regional conflicts and other factors, the oil price continues to rise. As of March 8, 2022, Brent crude oil has exceeded US $129, a new high since 2009. On the demand side, with the recovery of follow-up economic activities, oil demand is expected to continue to recover, while on the supply side, due to the sanctions imposed by the United States and Europe on Russia, the supply may be poor, the crude oil price is expected to run at a high level, improve the profit expectation of the coal chemical industry, and the capital expenditure of relevant enterprises is expected to increase significantly. According to the official account of the company, the company is the leading global coal chemical engineering company. It has undertaken over 95% of China’s coal chemical engineering design and construction tasks. It ranks first among the global oil and gas engineering construction companies, and is expected to benefit from the accelerated construction of the coal chemical industry in the future.
Investment suggestion: the company is expected to realize a net profit attributable to the parent company of 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 13 / 8 / 6 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.
