\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 346 Hengli Petrochemical Co.Ltd(600346) )
Event:
On April 29, Hengli Petrochemical Co.Ltd(600346) released the first quarterly report of 2022: in the first quarter of 2022, the company achieved a total operating revenue of 53.406 billion yuan, an increase of 0.32% year-on-year and 14.83% month on month; The net profit attributable to shareholders of listed companies was 4.223 billion yuan, up 2.71% year-on-year and 49.79% month on month; The gross profit margin reached 15.46%, up 1.43 percentage points year-on-year and 1.25 percentage points month on month; The net interest rate reached 7.91%, up 0.17 percentage points year-on-year and 1.84 percentage points month on month.
Key investment points:
Q1 performance grew steadily, demonstrating the company's steady operation ability
In Q1 2022, the company achieved a revenue of 53.406 billion yuan, a year-on-year increase of + 0.32% and a month on month increase of + 14.83%; The net profit attributable to the parent company was 4.223 billion yuan, with a year-on-year increase of + 2.71% and a month on month increase of + 49.79%. Under the background of high oil prices, it demonstrated its steady operation ability. Compared with the first quarter of 2021, the company's revenue and profit remained relatively stable, which mainly benefited from the smooth transmission of the prices of Q1's main products in 2022. At the raw material end, the average purchase price of crude oil reached 387159 yuan / ton, a year-on-year increase of + 48.19%, and the average purchase price of coal was 956.58 yuan / ton, a year-on-year increase of + 49.92%; On the product side, the average selling price of refining and chemical products reached 555374 yuan / ton, a year-on-year increase of + 51.48%, and the average selling price of PTA reached 500479 yuan / ton, a year-on-year increase of + 42.27%. Compared with Q4 in 2021, the company's performance improved significantly month on month, mainly benefiting from the improvement of production and sales of refining and chemical products. In 2022, the sales volume of Q1 refining and chemical products reached 5.6693 million tons, month on month + 88.29%.
In terms of period expense ratio, the company's sales / management / financial expense ratio in 2022 and Q1 was 0.18% / 1.42% / 2.48% respectively, with a year-on-year increase of + 0.08 / + 0.28 / - 0.34pct and a month on month increase of + 0.06 / - 0.60 / + 0.08pct; Meanwhile, the net cash flow from Q1's operating activities in 2022 reached 10.618 billion yuan, up 77.48% year-on-year, mainly due to the increase in cash received from the company's sales of goods and provision of labor services.
The project construction is accelerated, and the company is optimistic about its long-term growth
In Q1 2022, the cash paid by the company for the purchase and construction of fixed assets, intangible assets and other long-term assets reached 6.688 billion yuan, a year-on-year increase of + 68.22% and a month on month increase of + 120.95%. The company entered the peak period of project construction. Among them, Huizhou 5 million T / a PTA and Kanghui new material 450000 T / a degradable plastics are expected to contribute to the increase in production in 2022. From 2023 to 2024, the annual output of 800000 tons of functional polyester film / functional plastic project, Xuanda 1.5 million tons / year green multifunctional textile new material project, 300000 tons / year adipic acid new material supporting project, 1.6 million tons / year high-performance resin and new material project and 2.6 million tons / year high-performance polyester project will also be completed one after another. At the same time, the company has also introduced 12 production lines from Zhipu and Zhongke Hualian in Japan, with an annual production capacity of 1.6 billion square meters. It is expected to reach production successively since 2023, further expanding the layout of the company in the downstream new energy material market. With the accelerated construction of the company's new projects and reaching production capacity one after another, the company will show high growth in the future.
Carry out equity incentive and repurchase plans to demonstrate the company's confidence in development
In order to build a community of interests between employees and shareholders, the company announced on March 4, 2022 that it would implement the sixth phase of employee stock ownership plan. This stock ownership plan covers a wide range and has a large fund-raising amount. The total number of employees participating in the subscription will reach 11000 and the total fund-raising will reach 7.38 billion yuan. As of April 29, 2022, the sixth phase of the company's ESOP has purchased 649409 million shares through centralized bidding, with a turnover of 1.516 billion yuan, accounting for 0.92% of the company's total share capital. At the same time, from the end of 2021 to the beginning of 2022, the company has successively launched the third and fourth phase of share repurchase plan. Among them, the third phase of repurchase plan has been implemented, and the repurchase amount of the company has reached 1 billion yuan, and the top plan has been completed; The total repurchase fund of the fourth phase repurchase plan is up to 1-1.5 billion yuan, which fully demonstrates the company's confidence in future development.
The profit forecast and investment rating predict that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 16.510, 20.125 and 26.176 billion yuan respectively, and the EPS will be 2.35, 2.86 and 3.72 yuan / share. The corresponding PE will be 9, 7 and 6 times, giving a "buy" rating.
The implementation of risk warning policies, the construction progress of new production capacity is not up to expectations, the contribution performance of new production capacity is not up to expectations, the price of raw materials fluctuates, the change of environmental protection policies, the economy drops sharply, and the price of crude oil fluctuates sharply.
