Satellite Petrochemical (002648) Company Commentary Report: New Projects Put into Production Promote Record High Performance
Event: The company announced its 2019 performance forecast, and it is expected that the company will realize net profit attributable to shareholders of listed companies in 2019.
500 million, an annual increase of 32.
52%, one-year performance hit a record high.
The second phase of PDH and polypropylene project put into operation promoted the growth of performance.
The company’s main products include propylene, acrylic acid and carbonates, of which acrylic acid and esters are the main sources of profit.
From the perspective of the company’s business, the prosperity of the company’s products in 2019 is slightly inclined, and the spread of acrylic acid is inclined horizontally.
31%, PDH spreads twice every ten years.
The growth of the company’s performance 南宁桑拿 is mainly due to the increase in production capacity brought about by the commissioning of new projects.
In February 2019, the company launched the second phase of the PDH 45 project and put it into operation on May 15th. Benefiting from this, the company’s PDH capacity doubled and the polypropylene capacity increased by 50%.
The release of new project capacity has promoted output growth and is the main driver of long-term performance growth.
The fourth-quarter performance hit a record high, and the expansion of new projects guarantees future performance.
With the gradual release of new project capacity, the company’s performance continued to improve.
From the single quarter results, the net profit for Q1-Q3 in 2019 was 2 respectively.
37 and 3.
65 trillion, showing a trend of gradual improvement.
According to the forecast of the performance forecast, the fourth quarter performance was at 3.
28 ppm, a 10-year increase3.
In the fourth quarter of 1995, the quarterly performance also hit a record high.
In the future, the company’s remaining 30-inch acrylates and esters and 6 samples of SAP resin will be put into production successively. The ethylene cracking project is also expected to be completed by the end of 2020. The investment in new projects will promote the company’s future performance.
The initial split project provides long-term growth space.
The company plans to invest US $ 33 billion in Lianyungang to build projects such as expansion and splitting and PDH, with a total capacity of 400 in two phases.
At present, the project is progressing in an orderly manner. A series of agreements such as project design, patent technology license, and long-term equipment procurement have officially entered into force, and substantial work has been carried out.
The company established a joint venture with SUNOCO to operate integrated export facilities, and completed the leasing agreement for the first batch of wholesale dedicated transport vessels.
Crude oil storage tanks and terminals are also under construction.
Benefiting from the US shale gas revolution, the prospects for the introduction of split ethylene production are considerable.
With the progress of the first-phase economic and trade agreement between China and the United States, China will increase its purchase of energy and chemical products from the United States and promote the protection of the company’s supply of alternative raw materials.
At that time, the ethylene project will strive to provide long-term growth space for the company’s profit.
Profit forecast and investment advice: The company’s EPS in 2019 and 2020 are expected to be 1.
21 yuan and 1.
51 yuan, with a closing price of 14 on February 3.
Calculated at 63 yuan, the corresponding PE is 12 respectively.
1x and 9.7 times, maintain “overweight” investment rating.
Risk Warning: New Project Progress Exceeds Expectations, Product Prices Drop Sharply