“The company’s acetic acid plant has a capacity of 1.2 million tons / year, accounting for about 12% of China’s acetic acid market, which has a certain influence on the market.”
On the afternoon of March 25th, at the performance presentation meeting, mark he, general manager of Jiangsu Sopo Chemical Co.Ltd(600746) ( Jiangsu Sopo Chemical Co.Ltd(600746) . SH), said this when replying to the investor that “the company has pricing power over acetic acid”.
It is undeniable that this listed company located in Zhenjiang, Jiangsu Province is gradually attracting the attention of all investors.
On the same day, Jiangsu Sopo Chemical Co.Ltd(600746) fell 1.84% to close at 13.36 yuan. This price has fallen 47.85% from the high price of 25.62 yuan set on August 30 last year, but this does not affect institutional investors’ enthusiasm for Jiangsu Sopo Chemical Co.Ltd(600746) .
Just before the performance presentation meeting, 16 institutions, including Qianhe capital under Wang Yawei and Danshui spring under Zhao Jun, conducted a joint survey on Jiangsu Sopo Chemical Co.Ltd(600746) which has hardly happened in the past few years.
“There used to be institutional research, but it was sporadic, and we didn’t disclose it specifically. There are many research institutions this time, so we focused on the disclosure.” Jiangsu Sopo Chemical Co.Ltd(600746) relevant people told the 21st Century Business Herald that since last year, institutions have paid more and more attention to Jiangsu Sopo Chemical Co.Ltd(600746) and “maybe our performance is better?”
performance reversal is entirely due to the price rise of acetic acid
At present, Jiangsu Sopo Chemical Co.Ltd(600746) has a comprehensive production capacity of 500000 T / a methanol (for self use), 1.2 million T / a acetic acid, 300000 t / a ethyl acetate, 900000 T / a sulfuric acid, 200000 t / a chlor alkali and other chemical products.
Jiangsu Sopo Chemical Co.Ltd(600746) the latest annual report of 2021 shows that during the reporting period, the company achieved an operating revenue of 8.004 billion yuan, a year-on-year increase of 110.89%; The net profit attributable to the parent company was 2.402 billion yuan, a year-on-year increase of 938.45%.
The main reason for such an increase in performance is that the price of acetic acid and derivatives, the main product of Jiangsu Sopo Chemical Co.Ltd(600746) in 2021, increased significantly year-on-year due to the improvement of market supply and demand and the high prosperity of China’s chemical industry. In addition, Jiangsu Sopo Chemical Co.Ltd(600746) has continuously promoted the strategy of cost reduction and efficiency increase in recent years, and the level of production process and device control has been continuously improved. “Under the combined action of the above factors, the company’s performance has increased significantly.”
According to Jiangsu Sopo Chemical Co.Ltd(600746) ‘s 2021 annual report, the average sales price of acetic acid and derivatives excluding tax was 5879 yuan / ton, up 110.04% year-on-year; The gross profit margin of acetic acid and derivatives was 49.94%, up 30.66% year-on-year. It is precisely because of the substantial year-on-year increase in the sales price of acetic acid that drives the substantial increase in the performance of Jiangsu Sopo Chemical Co.Ltd(600746) .
On the afternoon of March 25, at the performance presentation meeting, Jiangsu Sopo Chemical Co.Ltd(600746) Board Secretary fan Guolin introduced that the main downstream applications of acetic acid include PTA, vinyl acetate, acetate, acetic anhydride, chloroacetic acid, etc. “It has a wide range of uses and is an important basic chemical raw material.”
According to the Research Report of Kaiyuan securities, in terms of the new capacity of acetic acid, according to Zhuo Chuang information, there will be no other new acetic acid capacity in 2022 except for the 700000 ton unit added by Guangxi Huayi in February 2022. Therefore, in the future, PTA, EVA and other downstream production capacity will still be put into operation, and it is optimistic that acetic acid will maintain a high boom in 2022.
The chemical industry analyst of a securities firm told the 21st Century Business Herald that their focus is not on Jiangsu Sopo Chemical Co.Ltd(600746) , but on the price and production capacity of acetic acid and ethyl acetate this year, “Judging from this week’s situation, there is a mismatch between supply and demand in the acetic acid market to a certain extent, but the downstream demand has not been really improved, and the short-term soaring price will certainly fall back. Jiangsu Sopo Chemical Co.Ltd(600746) the investment value lies in the price change of acetic acid, so institutions will suddenly care about it, otherwise no one will care about the stock before.”
Zhao Yajun, the head of Danshui Capital Co., Ltd., conducted a joint investigation on the market on June 16.
In the joint investigation of Jiangsu Sopo Chemical Co.Ltd(600746) the issue of “what is the reason for the recent sharp rebound in acetic acid price” is one of the key concerns of institutional investors
Jiangsu Sopo Chemical Co.Ltd(600746) ‘s reply is “The price of acetic acid was relatively stable in January this year, and fluctuated greatly after the Spring Festival in February. It formed a low point in the first ten days of March and began to rebound in the middle of March. Personal analysis is mainly affected by the commissioning of new units in Shanghai Huayi Group Corporation Limited(600623) Guangxi and the Spring Festival. In the long run, the increase of foreign trade exports, the large new capacity of PTA and EVA, and the potential demand for acetic acid will be stimulated with the decline of price will have a negative impact on the price of acetic acid The short-term price will return rationally after a large decline. “
Regarding the price trend of acetic acid this year, Jiangsu Sopo Chemical Co.Ltd(600746) Board Secretary fan Guolin said at the performance explanation meeting on March 25 that on the whole, the chemical industry is optimistic, “but as for the acetic acid and derivatives industry, there are many influencing factors related to the relationship between supply and demand, financial policies, international situation and so on.”
more than half a year, the market value has evaporated by more than 15 billion
In the previous research, another key concern of institutional investors is “what are the company’s plans for future industrial layout?”
Jiangsu Sopo Chemical Co.Ltd(600746) ‘s answer is “the company will firmly do a good job in the existing acetic acid industry in the future. Through continuous technological transformation and technological progress, the company will give full play to its advantages, consolidate the foundation, stabilize the overall situation and maintain its industrial position in acetic acid production. At present, the company is actively communicating with the government to plan new projects on more than 600 mu of land in the new area new material industrial park.”
For the future, Jiangsu Sopo Chemical Co.Ltd(600746) said that the company will form three directions: acetic acid and derivatives, chlor alkali and fine chemicals and new materials, and actively explore in the fields of hazardous waste utilization, coal substitution, industrial gas, thermoelectricity and so on.
At the performance presentation meeting on March 25, Jiangsu Sopo Chemical Co.Ltd(600746) Chairman Hu Zonggui told investors that the company would plan new material projects from the downstream of acetic acid and the direction with high relevance of the existing industrial chain, “At present, the scale, supporting facilities and future downstream product planning of relevant projects are being studied, and the communication with the government and relevant preparations in the early stage are well done. The company will make a timely announcement according to the progress of relevant matters and the requirements of relevant rules.”
It is worth noting that compared with the third quarterly report of last year, Jiangsu Sopo Chemical Co.Ltd(600746) the top ten shareholders of tradable shares in 2021 changed greatly.
UBS, which originally held 409039 shares, and JPMorgan Chase, which held 395893 shares, all reduced their holdings in the fourth quarter of last year and withdrew from Jiangsu Sopo Chemical Co.Ltd(600746) ‘s top ten outstanding shareholders.
While QFII significantly reduced its holdings, Chinese institutions, such as Tongyi Qilin No. 10 private equity fund, which originally held 1.35 million shares, and Huatai Bairui quantitative advance fund, which held 424400 shares, also significantly reduced their holdings in the fourth quarter of last year and withdrew from the top ten circulating shareholders.
New entrants include Huixin No. 56 single asset management plan of Huian fund holding 3270221 shares and Guicheng No. 1 single asset management plan of 1092377 million CAITONG fund, which are listed as the third largest circulating shareholder and the seventh largest circulating shareholder of Jiangsu Sopo Chemical Co.Ltd(600746) 2021 annual report respectively.
The share price in the secondary market may reflect the pressure brought by the reduction of QFII and other institutions. Since the high price of 25.62 yuan set on August 30, 2021, Jiangsu Sopo Chemical Co.Ltd(600746) the share price has fallen all the way to 12.17 yuan on March 9, 2022, and the market value of the company has fallen from 29.920 billion to 14.213 billion. In more than half a year, the market value of more than 15 billion has disappeared.
On March 25, 2022, Jiangsu Sopo Chemical Co.Ltd(600746) decreased by 1.84% to close at RMB 13.36, and the market value of the company was RMB 15.602 billion.
“The periodicity of the chemical industry is obvious. When the product price rises, the performance rises, and the stock price can rise, but once the cycle passes, there will be reverse data.” The chemical industry analyst of the above securities firm admitted that for listed chemical companies such as Jiangsu Sopo Chemical Co.Ltd(600746) such as , “its investment value lies in stepping on the cycle inflection point of the industry.”
The latest research report of Kaiyuan securities downward adjusted the profit forecast of Jiangsu Sopo Chemical Co.Ltd(600746) 20222023. It is estimated that the net profit attributable to the parent company of Jiangsu Sopo Chemical Co.Ltd(600746) from 20222024 will be 2.045 billion yuan (- 108), 1.981 billion yuan (- 280 million) and 1.867 billion yuan respectively, but still maintain the “buy” rating.
