\u3000\u3000 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426)
Events
The company announced on the 18th that the company’s new products methyl ethyl carbonate and diethyl carbonate have been successfully developed, the test device has opened up the process flow, and the product quality has reached the electronic level standard.
Analysis
Self research and development drive ability to effectively drive the implementation of the project. In the fourth quarter of 2021, the company has realized the quantitative production of 300000 tons of dimethyl carbonate production line, with outstanding scale advantages and cost advantages. Over the years, the company has made layout in the field of coal chemical industry and realized cost advantages with the help of coal gasification platform. However, over the years, the company not only has the ability to continuously optimize and improve, but also has gradually accumulated in the technical innovation of new products. The methyl ethyl carbonate, diethyl carbonate and dimethyl carbonate products produced in the previous period reflect the company’s self-R & D driving ability, It provides a basis for the company to further carry out project layout in the field of new energy in the future.
The company’s project construction efficiency is high, and the dimethyl carbonate phase II project is expected to be implemented gradually. Over the years, the company has developed steadily, and the construction of each project has been steady. Pilot research and development and technical breakthrough are carried out through small-scale production lines or test lines. After success, the company will quickly expand the scale and enhance the production capacity. Both acetic acid, dimethyl carbonate, ethylene glycol and other products have achieved good engineering scale-up, and greatly optimized the large-scale production cost, The successful R & D of new products is the success of the company’s pilot line, which realizes the opening of technology and the guarantee of quality. It is expected to provide a good foundation for the construction of the company’s new project in Dezhou, expand product categories, provide diversified products, accelerate the implementation of phase II project and form performance increment.
Equity incentive continued to be implemented, the company’s ability to resist risks was further improved, and the growth limit was broken through. This year, the company continues to implement the equity incentive plan and continuously improve the development power of the company. As a leading coal chemical enterprise, the advantages of the company are gradually recognized. At the same time, with the control of carbon neutralization, the cycle attribute of some products of the company is expected to gradually weaken, and the pattern optimization of the industry is expected to gradually stabilize the profits of the industry, The company’s advantage is to obtain higher individual advantage profit space on the basis of industry profitability, so as to support the company to continuously obtain higher product profitability. The restrictions on the growth space of the company have been plagued by continuous breakthroughs. The extension of the industrial chain and the construction of the second base provide the company with continuous growth and enrich the company’s product system at the same time.
Investment advice
In the fourth quarter, the prices of some coal chemical products showed a certain degree of correction, and the profit space of high-profit products in the early stage may be compressed, but it is expected that the overall profit level will still be at a good level. In the future, new materials and the second base will drive the improvement of the company’s performance. It is predicted that the company’s net profit attributable to the parent company from 2021 to 2023 will be 7.288 billion yuan, 7.385 billion yuan and 7.796 billion yuan respectively, EPS is 3.45, 3.50 and 3.69 yuan respectively, and the corresponding PE is 9.5, 9.1 and 8.6 times respectively, maintaining the “buy” rating.
Risk tips
Winter energy consumption control and environmental protection control affect the overall supply of the industry; The construction progress of the second base is not up to expectations; Impact of policy changes; Risk of large fluctuation of raw materials and products.
