\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 117 China National Chemical Engineering Co.Ltd(601117) )
Event: the company released its annual report of 2021 and the first quarterly report of 2022 on April 27, 2022. In 2021, it realized an operating revenue of 137289 billion yuan, a year-on-year increase of 25.43%, a net profit attributable to the parent company of 4.633 billion yuan, a year-on-year increase of 26.64%, and a net profit deducted from non attributable to the parent company of 3.469 billion yuan, a year-on-year increase of 2.54%. In the first quarter of 2022, the operating revenue was 35.291 billion yuan, a year-on-year increase of 41.54%, the net profit attributable to the parent was 977 million yuan, a year-on-year increase of 19.73%, and the net profit deducted from non attributable to the parent was 962 million yuan, a year-on-year increase of 21.13%.
Comments:
Order growth promoted performance and achieved a good start in the 14th five year plan. In 2021, the company achieved a total operating revenue of 137919 billion yuan, a year-on-year increase of 25.39%, and a net profit attributable to the parent company of 4.633 billion yuan, a year-on-year increase of 26.64%, all of which achieved the best level in history. Mainly due to: first, the increase of orders; Second, the profitability has been steadily improved, with the net sales interest rate of 3.64%, a year-on-year increase of 0.13 PCT; Third, cost control was effective. The proportion of sales expenses, administrative expenses and financial expenses in operating revenue decreased year-on-year, and the sum of the three was 2.43%, a year-on-year decrease of 0.46 PCT; Fourth, the income from trading financial assets (the joint-stock company HuaSu is listed).
In terms of newly signed order contracts, the newly signed contract amount of the company in 2021 was 269.77 billion yuan, an increase of 7.41% over the previous year. In terms of business areas, the newly signed chemical engineering contracts amounted to 19.486 billion yuan, accounting for 71.95% of the total newly signed contracts. Among the newly signed chemical engineering contracts, chemical industry accounted for 65.81%, and the contract amount increased by 55.1% year-on-year; Petrochemical contracts decreased by 20.83% year-on-year; Coal chemical industry accounted for 13.61%, and the contract amount decreased by 48.49% year-on-year. The newly signed infrastructure contracts amounted to 56.527 billion yuan, accounting for 20.95% of the total newly signed contracts, with a year-on-year increase of 1.01%. The newly signed Environmental Governance Contracts amounted to 10.447 billion yuan, accounting for 3.87% of the total newly signed contracts, an increase of 24.91%. In addition, compared with 2020, new business contracts for Industry and modern service industry were added in 2021, with a new contract amount of 8.623 billion yuan. In terms of contract areas, the newly signed contract amount in China was 220117 billion yuan, accounting for 81.59%, an increase of 9.13%; The newly signed overseas contracts amounted to 49.653 billion yuan, accounting for 18.41%, an increase of 0.37%.
The voice of the main business was further enhanced and continued. Construction engineering business is the core business of China National Chemical Engineering Co.Ltd(601117) , covering chemical industry, coal chemical industry, petrochemical industry, new materials, environmental protection, infrastructure and other fields. The company is one of the leading enterprises in China National Chemical Engineering Co.Ltd(601117) industrial engineering construction field with the most complete qualifications, the most complete functions, the most complete business chain and outstanding advantages in the industry. In the field of basic chemical industry, the company has mastered the world’s advanced technologies such as nitrogen fertilizer, phosphorus fertilizer and compound fertilizer. The technologies of salt chemical industry such as soda ash and chlor alkali are at the international advanced level, and the technologies of sulfuric acid, nitric acid, hydrochloric acid and ammonium nitrate are at the leading level in China; In the field of coal chemical industry, China National Chemical Engineering Co.Ltd(601117) master the most core and advanced basic technologies of coal to high-end chemical materials, such as multi nozzle opposed coal water slurry gasification, large-scale pulverized coal pressurized gasification, five ring furnace, Shenning furnace, one-step methanol to gasoline (MTG), syngas to ethylene glycol and other core technologies of modern coal chemical industry, which are in a leading position in the world; In the field of petrochemical industry, the company is at the leading level in China in oil refining, polymers, aromatics and other technologies; In the field of fine chemicals, the company is at the leading level in China in fluoride, methane, chloride, titanium dioxide and other technologies; In the field of phosphoric acid and phosphorus chemical industry, the company has the advanced, large-scale, green and integrated production technology of wet process phosphoric acid. It has been listed as a green process to promote the transformation and upgrading of traditional industries by the Ministry of industry and information technology and the national development and Reform Commission, and leads the design and construction of modern phosphoric acid and phosphorus chemical industry in China.
In 2021, the global energy and commodity prices rose significantly, and the petroleum and chemical industry boom was high. According to the data released by Petrochina Company Limited(601857) and the Chemical Industry Federation, the operating revenue and profit of China Petroleum & Chemical Corporation(600028) industry in 2021 reached a record high of 14.45 trillion and 1.16 trillion respectively, with a year-on-year increase of 30% and 126.8% respectively. According to the prediction of the American Chemical Council, the global chemical industry will grow by 3.8% this year. In addition, the coal chemical industry has great potential and great prospects. At present, it is necessary to improve the comprehensive utilization efficiency of coal as chemical raw materials and promote the high-end, diversified and low-carbon development of coal chemical industry. Among them, strengthening scientific and technological innovation is the most urgent task. It is necessary to further accelerate the key core technology research and actively develop coal-based special fuels and coal-based biodegradable materials.
Under the background of maintaining stability and promoting growth, with the idea of “double carbon” work becoming clearer and the requirements becoming more specific and operable, the chemical and petrochemical industry will further optimize the capacity scale and layout, the upgrading and transformation of traditional industries will be strengthened, and the promotion and application of green low-carbon advanced applicable technologies will be accelerated. As a leader in the chemical industry, the company is expected to benefit comprehensively by virtue of its advantages in technology, talents, engineering construction and other fields.
The new material project is about to be put into operation, with good performance, and there is great potential in the double carbon era. In the field of new materials, the company has developed and mastered core technologies in the field of new chemical materials such as caprolactam, adiponitrile and aerogel, and has reached the international advanced level. Relying on the self-developed green caprolactam complete set technology and series of catalysts, the caprolactam project was built in Fujian in 2016. After years of energy-saving, consumption reduction and quality improvement, the production capacity was increased to 330000 tons / year, creating the largest single line production capacity in the world and the best product quality in China. Relying on the self-developed technology of butadiene process adiponitrile, the adiponitrile project is investing in the construction of 200000 t / a production unit in Zibo, Shandong Province. In March 2022, the acrylonitrile cogeneration unit and hexanediamine unit supporting the project were successfully started at one time, and the first batch of qualified products were successfully produced, and the product quality reached high-grade products. Relying on the silicon-based aerogel gel technology jointly developed, the silicon-based aerogel project was successfully started up on February 27, 2022, and has produced the first batch of qualified silicon-based nano aerogel insulation felt products. The company expects that all major new industrial projects will be completed and put into operation in 2022, and will be put into normal production and operation.
In addition, the company actively implemented the major deployment of carbon neutralization and carbon peak, developed new energy, solid waste disposal and comprehensive utilization, new materials and other applications with the help of its own core technologies such as new materials and environmental protection, and gradually developed to physical operation. At present, the pilot test of carbon dioxide hydrogenation to methanol project, Beijing Fangshan hydrogen oil and hydrogen energy industry demonstration device of solid waste high temperature gasification project and domestic waste gasification project have been completed and entered the stage of industrialization demonstration. Poe project has completed the pilot process package and project site selection, and has entered the pilot design and construction stage; The construction of MCH (methylcyclohexane) pilot plant and catalyst preparation have been completed, started up smoothly and maintained stable operation; The high efficiency and environmental protection catalyst project has provided small-scale test samples to relevant suppliers and passed the performance test of China Automotive Research automobile inspection center. The pilot process package of nylon 12 project has been completed, and a 1000 ton pilot plant will be built in Zibo base. China’s first hppo (propylene oxide) industrial plant built with its own technology was successfully started up in Jiangsu Fuqiang new materials Co., Ltd.
The pilot project of waste gasification in Tengzhou, Shandong Province has been mechanically completed and will be commissioned soon. The demonstration device for waste to hydrogen oil conversion has been built in Fangshan, Beijing, and has been put into trial operation. The purity of hydrogen produced has reached the standard. The large supercritical carbon dioxide cycle generator set participated in the research and development was put into operation in Xi’an. The carbon black recycling project has completed the preparation of laboratory samples. All position intelligent welding Siasun Robot&Automation Co.Ltd(300024) relies on Sichuan Leshan polysilicon project to complete the final acceptance, and is being popularized and used by relying on projects under construction. In addition, the company listed and established China National Chemical Engineering Co.Ltd(601117) Environmental Protection Research Institute, China National Chemical Engineering Co.Ltd(601117) carbon neutralization science and Technology Research Institute, China National Chemical Engineering Co.Ltd(601117) intelligent equipment research institute to carry out research in key fields such as comprehensive treatment of coking water environment basin, environmental protection and new materials, “double carbon” related green technology, non-standard equipment manufacturing and high-end equipment manufacturing.
In 2021, the total operating revenue of the company was 116.88% of the annual budget, the newly signed contract amount was 103.76% of the annual budget, the total profit was 6.041 billion yuan, and 124.30% of the annual budget was completed. In 2022, the company plans to complete: the newly signed contract amount is 270 billion yuan (an increase of 3.85% compared with the budget in 2021), the total operating revenue is 146.8 billion yuan (an increase of 24.41% compared with the budget in 2021), and the total profit is 6.08 billion yuan (an increase of 25.1% compared with the budget in 2021).
In the context of the “double carbon” goal, the company can be expected in the future with the continuous application of new material projects and its own environmental protection core technologies.
Profit forecast: Based on the company’s record amount of orders, the vigorous development of nylon industry chain, booming prices and the upcoming production of new material projects, we raised the net profit attributable to the parent company in 20222023 to 6.272 billion yuan and 8.136 billion yuan respectively (the original value was 5.82 billion yuan and 8.03 billion yuan), and increased the net profit attributable to the parent company in 2024 to 9.367 billion yuan, EPS to 103 yuan, 1.33 yuan and 1.53 yuan respectively, maintaining the “buy” rating.
Risk tips: the production capacity is less than expected, the chemical project policy is stricter, the enterprise safety production, etc.
