Satellite Chemistry ( Zhejiang Satellite Petrochemical Co.Ltd(002648) )
The C2 & C3 industrial chain grew rapidly, and the new energy and new materials of the Distribution Bureau maintained the “buy” rating
The company started from acrylic acid and ester to C3 & C2 bulk chemical production enterprises, then transformed into a low-carbon chemical new material technology company, firmly laid out new energy and new materials, and further extended the leading industrial chain of light hydrocarbon integration. We maintain the profit forecast and expect to realize the net profit attributable to the parent company of RMB 8.83/10.47/11.57 billion from 2022 to 2024, with a year-on-year increase of 46.9% / 18.6% / 10.6%; EPS is 5.13/6.08/6.73 yuan, corresponding to the current stock price, PE is 7.2/6.1/5.5 times. The production capacity of the company’s C2 & C3 industrial chain has increased steadily, while transforming to new energy and new materials. The C3 & C2 dual industrial chain extends to high-end and low-carbon, with high growth in the future and maintaining the “buy” rating.
C3 chain continues to consolidate, C2 chain contributes to performance, and dual industrial chains go hand in hand
The company’s C3 industrial chain continues to expand and consolidate its leading position. The propylene production capacity will be increased from 900000 tons / year to 1.7 million tons / year, supporting the production of butyl octanol and neopentyl glycol, so as to truly realize the closed loop of acrylate industrial chain. C2 industrial chain has emerged and contributed profits. The total planned ethylene capacity of C2 industrial chain is 2.5 million tons / year, which exceeds the propylene capacity of C3 industrial chain. It is expected to reproduce the successful experience of C3 industrial chain. The dual industrial chain will be extended at the same time. In the future, the company will form a new development pattern of functional chemicals, new energy and new materials.
Accelerate the layout of new materials and steadily move forward to a science and technology enterprise of low-carbon chemical new materials
The company first developed upstream to the raw material industry chain, and gradually formed a C3 integrated industry chain. As early as 2017, the company took building a scientific and technological enterprise of new chemical materials as its development strategy, and further used imported ethane to expand the C2 industrial chain. On the basis of light hydrocarbon integration, the company firmly arranges high-end new material products and focuses on promoting the development of high-end polyolefin, EAA, ethanolamine, polyether macromonomer, acrylonitrile and other new materials. The new material products will be put into operation from 2022 to 2023, and the products will provide new kinetic energy for the sustainable development of the company. The company is steadily making great strides towards the strategic goal of low-carbon chemical new material science and technology enterprise.
Layout new energy materials and hydrogen energy, and firmly cut into the new energy track
Relying on the advantages of C2 and C3 industrial chain integration, the company firmly advances to the new energy industry. The downstream of light hydrocarbon is firmly arranged with battery grade DMC, Poe for photovoltaic adhesive film, electronic grade hydrogen peroxide and hydrogen energy. All products are in demand in the new energy industry. The company firmly cuts into the new energy track with new energy materials and hydrogen energy as the starting point, and is expected to continue to benefit from the rapid development of the new energy industry. The company’s by-product hydrogen is expected to reach 300000 tons / year. The hydrogen source is located in the economically developed and densely populated energy load center in East China, close to the downstream consumer market, with low storage and transportation costs. The utilization of by-product hydrogen is consistent with carbon neutralization. The company is expected to open a new era of comprehensive utilization of hydrogen energy.
Risk warning: the project progress is not as expected, the price of raw materials fluctuates sharply, and the international trade policy changes
