\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 346 Hengli Petrochemical Co.Ltd(600346) )
Performance reached a new high, employee stock ownership and downstream extension demonstrated development confidence and maintained the “buy” rating
On April 6, the company released its annual report for 2021. In 2021, the company achieved a revenue of 19.970 billion yuan, a year-on-year increase of + 29.92%, and a net profit attributable to the parent company of 15.531 billion yuan, a year-on-year increase of + 15.37%, a record high. Combined with the current crude oil price and downstream demand, we lowered 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 13.004 (- 59.98), 19.698 (- 52.37) and 24.736 billion yuan, and the EPS will be 1.85 (- 0.85), 2.80 (- 0.74) and 3.51 yuan / share respectively. The current stock price corresponds to 11.4, 7.5 and 6.0 times of PE in 20222024. In March, the company issued a large-scale employee stock ownership plan, which deeply bound the interests of employees and the interests of the company. At the same time, the downstream continued to layout new material projects and maintain the “buy” rating.
Affected by the dual control of energy consumption and the slowdown of downstream demand, the net profit attributable to the parent company in Q4 fell month on month
In Q4, the company achieved a revenue of 46.482 billion yuan in a single quarter, basically unchanged month on month; The net profit attributable to the parent company was 2.819 billion yuan, a month on month increase of – 30.74%; The net profit deducted from non parent company was 2.506 billion yuan, a month on month increase of – 33.16%. The prices of Q4 refining, PTA and new material products were + 37%, 11% and 4% month on month respectively; However, in addition to new material products, the sales volume of refining and PTA products decreased, especially the refining and chemical products decreased by 175.2 tons, and the price increase and volume decrease made the revenue basically flat. However, Q4’s operating cost / revenue was 85.74%, an increase of 2.54 PCTs compared with Q3. Q4’s coal and crude oil prices continued to rise, making the cost side rise more obvious. Q4’s gross profit margin and net profit margin showed a downward trend, and its profitability was affected. In 2021, the company’s coal and crude oil purchase prices were + 67.51% and 50.62% year-on-year respectively. Under the condition of double control of energy consumption and rising cost, the company’s performance reached a new high, showing excellent risk resistance and operation ability. At the same time, as of 2021, the company’s asset liability ratio has decreased to 72.75%, which has decreased for three consecutive years. The cash flow from operating activities is 18.67 billion yuan, which remains at an excellent level.
As the leader of refining and chemical industry, the company has the strength to extend to the downstream, and the new chemical materials sector is full of growth
On January 26, the company issued the announcement of investing in the construction of 1.6 million tons of high-performance resin and new materials project and 2.6 million tons of high-performance polyester project, and once again launched the layout in the field of downstream new materials. On March 3, the company released a large-scale employee stock ownership plan, demonstrating the company’s strong confidence and determination for future development. We are optimistic that the company will continue to extend downstream by relying on refining, and the company still has long-term development power and growth momentum.
Risk tips: oil prices continue to rise sharply, production capacity is less than expected, downstream demand slows down, etc.
