Satellite Chemistry ( Zhejiang Satellite Petrochemical Co.Ltd(002648) )
\u3000\u30001. Make further progress; The Q1 performance of satellite in 2022 increased in the same direction
According to the company’s disclosure, in the first quarter of 2022, the company’s operating revenue was 8.138 billion yuan, an increase of 124.54% over the same period of the previous year; The net profit attributable to shareholders of listed companies is expected to be 1.521 billion yuan, an increase of 98.44% over the same period last year. The main reason is that the company’s ethane cracking phase I project was put into operation on May 20, 2021, improving the company’s profitability.
\u3000\u30002. Acrylic acid and ester: it is expected to maintain the profitability of 2021 in 2022
The C3 industrial chain of the company is highly integrated and takes acrylic acid as the core, which is unique among Chinese peers. With the production of 800000 tons of PDH and 800000 tons of butyl octanol in the future, the industrial chain of the company will be further improved and its cost advantage will be improved.
At the beginning of 2021, the profit of butyl acrylate exceeded 2000 yuan / ton, reaching a record high. Subsequently, although the profit has declined, it has been maintained at a medium high level, with an average annual net profit of 814 yuan / ton in 2021.
In 2022, satellite, Huayi and Dongfang Chemical will put butyl acrylate into operation. The supply and demand of butyl acrylate is expected to change little compared with 2021, and there is still a good profit space.
\u3000\u30003. C2 industrial chain: phase II is about to be put into operation and plans to develop into new materials
The company’s ethane cracking phase II project is expected to be put into trial production in June 2022, bringing 400000 tons of polyethylene, 730000 tons of ethylene oxide and Shanghai Pudong Development Bank Co.Ltd(600000) tons of styrene to the company.
Relying on its C2 industrial chain, the company plans to develop the new materials Industrial Park project in the next step. It is expected that the trial production of 100000 tons of ethanolamine, 400000 tons of polystyrene and 150000 tons of battery grade carbonate products will be completed in the third quarter and the fourth quarter of this year. The downstream products of ethylene oxide will be expanded from the original polyether macromonomer and ethylene glycol to ethanolamine and carbonate series products,
By increasing the types of downstream products of ethylene oxide, the flexibility of the company’s industrial chain is improved, and the output of its own products can be adjusted according to different market conditions to further improve the company’s profits.
The company is also committed to developing new materials: at present, α- Olefin and Poe projects have completed pilot design, obtained invention patent authorization and owned independent intellectual property rights.
\u3000\u30004. Profit forecast and valuation
Maintain the company’s net profit attributable to the parent company of 8.327 billion / 10.703 billion in 2022 / 2023. Maintain the “buy” rating.
Risk tips: α- Risk of olefin and Poe R & D failure; The risk that the second phase of ethane cracking project is put into operation is lower than expected; The risk that ethane prices will rise sharply with natural gas.
