Hengli Co. (600346) Annual Report Commentary Report: 18 Years of Refining and Chemical Projects with Performance Consistent with Expectations Set sail

Revenue and profits doubled, dragging on long-term performance in the fourth quarter. The company announced its 2018 annual report, which reported a total operating income of 600.

670,000 yuan, an increase of 26 in ten years.

51%; Realize net profit attributable to shareholders of listed companies.

23 ppm, a ten-year increase4.


The annual profit level set a record high for listed companies.

Specific to each quarter, Q1-Q4 respectively achieved net profit attributable to mothers11.



7 / -3.

3 billion, the fourth quarter of crude oil prices showed a unilateral rapid decline, the industry’s profit passively shifted, the company’s inventory price loss was zero.

4.8 billion, sustainable peers.

PTA business is the main driver of revenue and profit growth. The newly injected PTA operating assets have become the main driver of revenue and profit growth. Hengli Petrochemical (PTA business) has realized net profit.

400 million, capacity utilization reached 105.

7%, the report estimates that PTA sales are 573 tons, and PTA tons net profit is expected to be 339 yuan / ton.

Looking forward to 2019, the domestic PTA supply-side increase is quite limited, and the demand increase is still in progress. The supply and demand of the PTA market is expected to further tighten, and the PTA profit level is expected to reach 350?
About 400 yuan / ton.

The profits of polyester filaments are stable, and the engineering plastics and film businesses have fully improved. The polyester chemical fiber business scale has also maintained a relatively stable profit range. In 2018, the company’s polyester civilian filaments and industrial filaments were close to full load.

Polyester full-caliber harvest 229 was inserted (civilian silk 131 / industrial silk 14 / polyester chip 84 additives), and Hengli Chemical Fiber achieved net profit of 13.

9 billion yuan, the net profit of denatured polyester unit is about 607 yuan / ton (600 yuan / ton in 17 years), which is significantly relative to its peers. It has two advantages: 1) The profit of polyester industrial yarn is better than that of civilian yarn. The report indicates that industrial silk woolInterest rate 30.

2%, civil silk gross margin of 20.

3%; 2) The company’s polyester civilian silk varieties FDY and DTY account for a relatively high proportion, and are positioned at the high end, with a high proportion of differentiation.

The subsidiary Yingkou Kanghui Petrochemical reported net profit.

0.5 billion (1 in 17 years).

1.3 billion), the initial improvement 深圳桑拿按摩网 of the profit of engineering plastics PBT and polyester film business.

Refining and chemical projects set sail. Ethylene, PTA, and filament projects are follow-up increments. According to the company’s announcement, Hengli Refining and Chemicals successfully opened the entire production process in March 2019 and successfully produced gasoline, diesel, aviation kerosene, PX, etc.The main products are moving towards the goal of achieving full load operation and full production of the entire refinery. At the same time, the company has reached strategic cooperation agreements and product sales agreements with partners such as PetroChina, Sinopec, CNOOC and Sinochem, and oil product sales channels.Achieve consensus.

As the construction of refining and chemical projects is coming to an end, ethylene and PTA engineering projects 都市夜网 will become important follow-ups. The 150-ton / year ethylene project and the 250-ton / year PTA-4 are expected to be delivered in the fourth quarter of 2019.The project is expected to be delivered in the second quarter of 2020. Hengke’s 135 budget / year split filament project will be launched in batches within 48 months.

The company’s profit forecast, forecast and investment rating refinement and chemical projects have been put into operation smoothly, and its progress is significantly ahead of similar projects. The company is expected to enjoy high PX profit before the PX price drops, and forecast 19/20 performance from 63.


100 million increased to 68.


800 million, an increase of 100 in 2021 performance forecast.

800 million, currently corresponding to PE14 in 19/20/21.



7x, maintain “Buy” rating.

Risk reminder: polyester filament and PTA profit review; risk of refining and refining projects being less than expected