The disclosure of the annual report is in progress. As of the press release on March 17, 246 A-share annual reports for 2021 have been released, and the chemical raw materials and chemical products manufacturing industry has temporarily become the industry with the fastest performance growth of listed companies. Statistics show that according to the growth rate of net profit attributable to the parent company, five of the top ten listed companies have chemical raw materials and chemical products manufacturing, accounting for half.
Bai Wenxi, chief economist of IPG, told the Securities Daily: “the reason for the outstanding performance of this sector last year is that the Chinese market recovered rapidly, and the changes in the international supply chain led to strong external demand. Due to the lack of production capacity due to switching off and power restriction and environmental protection requirements, the tension between supply and demand was triggered, which promoted the price rise and gross profit margin of this sector.”
5 companies with net profit growth exceeding 1000%
Among the 246 performance reports that have been disclosed, 30 chemical enterprises have taken the lead in disclosing annual reports, and the performance growth rate leads other industries.
Ranked by the growth rate of net profit attributable to the parent company, the net profit growth rate of 5 of the top 10 listed companies exceeded 1000%, including 3 chemical enterprises, namely Sichuan Hebang Biotechnology Co.Ltd(603077) , Jiangsu Yida Chemical Co.Ltd(300721) , Xinjiang Zhongtai Chenical Co.Ltd(002092) . Among them, Sichuan Hebang Biotechnology Co.Ltd(603077) ranks first temporarily with a net profit growth rate of 728428%. In addition, the net profit growth rate of most chemical enterprises ranks high.
In terms of revenue, among the chemical enterprises with disclosed performance, except one with negative revenue growth, the rest showed positive growth.
“From a macro perspective, the performance of the chemical industry is generally good, mainly due to the concentrated release of demand under the suppression of the global epidemic.” Kuang Yuqing, founder of lens company, told Securities Daily that chemical industry is a basic industrial raw material, especially in China’s basic industrial material supply chain, which has a high weight and benefits greatly.
the performance report released by Sichuan Hebang Biotechnology Co.Ltd(603077) shows that in 2021, the company achieved an operating revenue of 9.867 billion yuan, a year-on-year increase of 87.56%; The net profit attributable to the parent company was 3.023 billion yuan, a sharp increase of nearly 73 times year-on-year Sichuan Hebang Biotechnology Co.Ltd(603077) said that the strong growth of performance in 2021 was mainly due to the booming production and sales of main products in the four business segments of Lianhe alkali, glyphosate / glyphosate, methionine and photovoltaic.
The Wanhua Chemical Group Co.Ltd(600309) annual report, known as the “top of chemical industry”, shows that the volume and price of the company’s main products have risen simultaneously, the performance has reached a record high, and the operating revenue has reached 145538 billion yuan, a year-on-year increase of 98.19%; The net profit attributable to shareholders of listed companies was 24.649 billion yuan, a year-on-year increase of 145.47%.
Wanhua Chemical Group Co.Ltd(600309) said that the company’s new production capacity and new devices have been put into operation one after another, which has improved the global supply capacity. The volume and price of major products such as polyurethane, petrochemical and fine chemicals have increased simultaneously, resulting in a significant increase in operating revenue and net profit.
Wanhua Chemical Group Co.Ltd(600309) also said that the gross profit margin has increased, mainly due to the gradual imbalance between supply and demand, resulting in the rise of product prices greater than the rise of raw material prices, especially in the overseas market, due to the impact of extreme weather and epidemic, the periodic supply shortage and more price increases.
some segments are expected to be optimistic
“In the long run, the gross profit margin of China’s chemical industry may decline in the future. However, the market capacity and enterprise performance will still maintain a steady growth trend.” Bo Wenxi said.
According to the price monitoring of business society, in 2021, 94 kinds of commodities in the chemical sector increased by 49.08% a year. Among them, the year-on-year growth of 10 products was negative, and the year-on-year growth of 84 products was positive. The top three products were lithium carbonate (432.00%), lithium hydroxide (316.67%), ammonium sulfate (214.29%), and the top three products were hydrogen peroxide (- 46.39%), butadiene (- 42.57%) and propylene oxide (- 41.27%).
Looking forward to 2022, some subdivisions of the chemical industry are expected to be optimistic. Industry analysts believe that the wide-ranging rise in the price of chemical industry varieties has driven the performance of Listed Companies in this sector higher.
In addition, the high business cycle of titanium dioxide in this segment is still continuing. Since July 2020, the titanium dioxide industry has entered a high business cycle. So far, this round of titanium dioxide price rise has lasted for 20 months.
In 2022, the second round of price increase of titanium dioxide has been started. After the price increase announcement of Lb Group Co.Ltd(002601) , Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) on March 9, Anhui Annada Titanium Industry Co.Ltd(002136) , Guangdong Huiyun Titanium Industry Co.Ltd(300891) , Gpro Titanium Industry Co.Ltd(000545) .
