\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 346 Hengli Petrochemical Co.Ltd(600346) )
Q1 performance exceeded expectations, the company’s profitability remained stable in the rise of crude oil and maintained the “buy” rating
On April 29, the company released the first quarterly report of 2022. Q1 achieved a revenue of 53.397 billion yuan, a year-on-year increase of + 0.31%, and a net profit attributable to the parent company of 4.223 billion yuan, a year-on-year increase of + 2.71%. The company’s performance greatly exceeded expectations. We maintain the profit forecast for 20222024. It is estimated that the net profit attributable to the parent company in 20222024 will be 13.004, 19.698 and 24.736 billion yuan, and the EPS will be 185, 2.80 and 3.51 yuan / share respectively. The current stock price corresponds to 11.3, 7.5 and 6.0 times of PE in 20222024. As the leader of refining and chemical integration, the company’s profitability at the low economic level has been verified. Previously, the company issued a large-scale employee stock ownership plan and continued to layout new material projects downstream. We are firmly optimistic about the company’s value revaluation and maintain the “buy” rating.
Q1 company’s revenue and net profit attributable to the parent company increased year-on-year and month on month, and the gross profit margin increased significantly month on month
In Q1, the company achieved a revenue of 53.397 billion yuan in a single quarter, a month on month increase of + 14.81%; The net profit attributable to the parent company was 4.223 billion yuan, a month on month increase of + 49.80%; The net profit deducted from non parent company was 4.114 billion yuan, a month on month increase of + 64.17%. The prices of Q1 refining, PTA and new material products were 555374, 500479 and 929171 yuan / ton respectively, with a month on month ratio of – 11.9%, + 0.83% and + 2.34%; In terms of sales volume, the sales volume of PTA and new material products decreased by 3.1% and 20.3% month on month respectively, but the sales volume of refining and chemical products increased significantly by 88.29% month on month. The coal price of Q1 is lower than that of Q4, but the oil price rises sharply. According to the operation data, the average purchase price of Q1 crude oil is 387159 yuan / ton. The gross profit margin of Q1 company was 15.46%, which was higher than that of Q4. Under the pressure of terminal product prices and the sharp rise of cost crude oil, the company withstood the pressure, and the sales volume of refinery products maintained a significant growth month on month. Its refinery profitability was verified at the low point of the boom. The inventory income brought by the rise of crude oil also played an important role in the profitability of the company.
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
According to the 2021 annual report, the company will introduce the wet lithium battery diaphragm production line of Zhipu in Japan and Zhongke Hualian in Qingdao, with an annual production capacity of 1.6 billion square meters. The delivery is expected to be completed within 18 months from January 2022. On January 26, the company issued the announcement of 1.6 million tons of high-performance resin and new materials project and 2.6 million tons of high-performance polyester project, and launched the layout in the field of downstream new materials again. On March 3, the company released a large-scale employee stock ownership plan, demonstrating the company’s strong confidence in future development. We are optimistic that the value of the company as the leader of refining and chemical industry will be revalued.
Risk tips: oil prices continue to rise sharply, production capacity is less than expected, downstream demand slows down, etc.
