\u3000\u3 China Vanke Co.Ltd(000002) 493 Rongsheng Petro Chemical Co.Ltd(002493) )
Event: Rongsheng Petro Chemical Co.Ltd(002493) released the performance announcement for the first quarter of 2022. During the reporting period, the company achieved a total operating income of 68.601 billion yuan, a year-on-year increase of + 98.38% and a month on month increase of + 43.92%; The gross profit was 13.221 billion yuan, a year-on-year increase of + 63.81% and a month on month increase of + 13.58%; The net profit attributable to the parent company in a single quarter was 3.116 billion yuan, a year-on-year increase of + 18.85% and a month on month increase of + 15.33%.
Comments: the company’s performance increment in the first quarter was mainly contributed by Zhejiang Petrochemical. According to the financial report information, the profit and loss of minority shareholders in the first quarter was about 2.668 billion yuan. Considering that the company’s main investment consolidated enterprise is Zhejiang Petrochemical, and referring to the Tongkun Group Co.Ltd(601233) investment income of 20% equity shareholders of Zhejiang Petrochemical, it is estimated that the performance of Zhejiang Petrochemical in the first quarter is about 5.4 billion yuan. Therefore, considering the contribution of Zhejiang Petrochemical, the net profit attributable to the parent company is about 2.7 billion yuan. The profit of other businesses of the company is about 416 million yuan, which is in line with expectations.
The second phase of Zhejiang Petrochemical is gradually converted to fixed assets, and the product territory is expanding to new materials: according to the announcement, the second phase of Zhejiang Petrochemical will be fully put into operation in January 2022. With the gradual conversion of phase II project to fixed assets during the year, it will bring new increment to the company’s performance. In addition, the announcement shows that a variety of new high value-added chemical materials are arranged in the downstream of Zhejiang Petrochemical phase II. Among them, photovoltaic EVA has been successfully put into operation on December 30, 2021, and the current output is smooth; In addition, ABS, PC, DMC and other products are deployed. At the same time, according to the information in the annual report, Zhejiang Petrochemical α- Olefins have been successfully filed for the project, and the current project is in the pilot stage. The polyester sector has announced that 50000 tons of RPET has been successfully put into operation, and the subsequent 90000 tons of production capacity is being actively promoted; Shengyuan phase II 500000 tons of differentiated fiber is expected to be put into operation within this year; Yongsheng technology is expected to have 70000 tons of film production capacity in the year. With the incremental contribution of Zhejiang Petrochemical phase II and the continuous launch of high-end products of new materials, the company is expected to further optimize industrial synergy and further improve its overall profitability and ability.
Investment suggestion: maintain the Buy-A investment rating. We expect the net profit growth of the company from 2022 to 2024 to be 15.743 billion yuan, 17.299 billion yuan and 20.267 billion yuan respectively.
Risk tips: repeated epidemics, economic downturn, raw material price fluctuation risk, raw material quota risk, product price fluctuation risk, project construction less than expected risk, etc.
