Satellite Chemistry (002648)
Event: the company issued the announcement on foreign investment and signed the investment project cooperation agreement with the Management Committee of the National East Central West Regional Cooperation Demonstration Zone ( Jiangsu Lianyungang Port Co.Ltd(601008) Xuwei New Area). The company plans to invest in the new green chemical new material industrial park project in Jiangsu Lianyungang Port Co.Ltd(601008) Xuwei new area, with a total investment of about 15 billion yuan including tax.
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In the field of new chemical materials, the company has accelerated the pace of transformation: the company plans to invest in a new green chemical new material industrial park project in Xuwei new area, which mainly includes an annual output of 200000 tons of ethanolamine (EOA), 800000 tons of polystyrene (PS) and 100000 tons α- Olefin and supporting Poe, 750000 T / a carbonate series production unit. Among them, phase I project plans to build two sets of 150000 T / a carbonate, two sets of 100000 t / a ethanolamine units and two sets of 200000 t / a polystyrene units; The second phase project is planned to build an annual output of 100000 tons α- Olefin and Poe units, annual output of 150000 T / a carbonate series units; Phase III project plans to build 400000 T / a PS unit, 300000 t / a carbonate series unit, etc. 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 company extends to the three fields of downstream new materials, new energy and high-performance chemicals, and has established the development strategy of building a low-carbon chemical new material technology company.
The cost advantage of industrial chain integration is prominent, and the development space of downstream market is broad: this investment project is the downstream of the industrial chain of the company’s subsidiary Jiangsu Lianyungang Port Co.Ltd(601008) Petrochemical Co., Ltd., in which PS takes styrene, the product of Jiangsu Lianyungang Port Co.Ltd(601008) Petrochemical phase II project, as the raw material, which has the cost advantage of industrial chain integration. Carbonate is the main solvent of lithium battery electrolyte. As the core material of power battery, the market demand of lithium battery electrolyte depends on the output of new energy vehicles to a certain extent. Under the background of the rapid development of new energy electric vehicles, the electrolyte market has broad prospects, driving the steady growth of carbonate demand. After the completion of the project, the company will become one of the electrolyte and solvent manufacturers with the most complete industrial chain, the most complete products and the cleanest process in China.
The first phase of the Jiangsu Lianyungang Port Co.Ltd(601008) C2 project runs well and continues to promote the layout of the C2 industrial chain: Jiangsu Lianyungang Port Co.Ltd(601008) C2 project is successfully started at one time and officially put into operation on May 20, 2021. The second phase of the project is expected to be completed in the middle of 2022, including 1.25 million tons of ethylene, 400000 tons of HDPE, 730000 tons of ethylene oxide and 600000 tons of styrene. Two sets of 250000 ton polyether macromonomer and one set of 100000 ton ethanolamine unit will be built in the downstream of ethylene oxide; A 400000 ton polystyrene plant will be built downstream of styrene. The continuous promotion of C2 project is expected to further thicken the company’s performance.
Profit forecast, valuation and rating: we maintain the company’s profit forecast from 2021 to 2023. It is estimated that the company’s net profit from 2021 to 2023 will be 6.813 billion yuan / 8.798 billion yuan / 10.074 billion yuan respectively, and the corresponding EPS will be 3.96 yuan / 5.11 yuan / 5.86 yuan respectively. Maintain the “buy” rating.
Risk tip: the launch progress of new capacity is less than expected, and the product price difference is at risk of falling.
