Heng Yi Petrochemical Million Tons Of Fiber Project First Production Line Put Into Operation, Moderate Expansion Has More Favorable Voice.

Heng Yi Formosa Petrochemical Co (hereinafter referred to as "Hengyi petrochemical") announced in the evening of February 23rd that the first production line G line (capacity 250 thousand tons / year) and related supporting works were put into operation in February 23, 2020, with the annual production capacity of 1 million tons differential environmental protection functional fiber construction project (hereinafter referred to as "project") built by Haining Hengyi New Material Co., Ltd.. And officially produce qualified products, the products are mainly POY fine denier.


Heng Yi Petrochemical said that the polyester and spinning equipment of the project is advanced, using the whole process of intelligent chemical engineering, using the most advanced intelligent manufacturing mode to produce differentiated and environmentally friendly functional polyester filament, will build high-performance chemical fiber production plant, and promote the high quality development of the company's products. At the same time, the product structure of the project has the characteristics of differentiation, environmental protection, functionality and high quality. The added value of products and strong market competitiveness.


Hengyi Petrochemical said that the launch of the project is conducive to optimizing the product structure of the company, innovating the production and operation mode of the company, stabilizing the leading position of the company, improving the added value of chemical fiber products, optimizing the structure of polyester products, enhancing the core competitiveness of enterprises, enhancing the profitability of the company, and bringing long-term positive effects on the company's business performance.


Reporters learned here that Haining Hengyi annual output of 1 million tons of fiber projects located in the Haining Economic Development Zone (Jianshan New Area), to create a "black light factory, no factory" as the goal, is committed to create a "domestic first-class, industry-leading" intelligent chemical plant. The total land area of the project is about 2500 mu, with a total investment of 18 billion yuan, and the design capacity is 3 million 150 thousand kinds of different functional fibers with an annual output of 3 tons. Among them, the first phase of the project invested 6 billion 360 million yuan, 1232 acres of land, the use of advanced melt spinning technology, intelligent manufacturing and green manufacturing technology, the annual output of 1 million tons of intelligent environmental protection functional fiber. The project also promotes energy cascade utilization, energy conservation and consumption reduction, and "three wastes" management, and vigorously promotes green manufacturing.


The reporter learned from the announcement that since 2018, Hengyi Petrochemical has continued to strategically acquire polyester production capacity, mainly including Jiaxing Yi Peng, Taicang Yifu and double rabbit new materials, which have increased 1 million 550 thousand tons of polyester and downstream filament production capacity; two, the completion of the acquisition of Hangzhou Yi Jin in the end of April, increased by 850 thousand tons of filament; and in addition, the construction projects include 500 thousand tons of FDY built in Jiaxing, Taicang. The project will be fully released in 2020 and the "1 million tons annual differential environmental protection functional fiber construction project" project put into operation in February 23rd. After the completion of the two projects, a total of 1 million 500 thousand tons of polyester production capacity will be added.


According to the comprehensive Hengyi Petrochemical announcement, by the end of 2019, it was estimated that the production capacity of Hengyi polyester could reach 6 million 700 thousand tons, an increase of about 1 million 600 thousand tons compared with the beginning of the year, and a joint venture of 200 thousand tons of caprolactam under construction. In September 8th, the expansion of 100 thousand tons could be completed.


Related research institutions said that in 2019 1-10, the production of polyester filament in China increased by about 6.4% year-on-year. Considering that polyester still has a certain profit, the production of polyester filament will not be reduced in large scale in the short term. It is estimated that the actual growth rate of domestic supply in 2019 is expected to be around 5-7%.


According to the current situation, it is estimated that in 2020, there will still be about 3 million tons of polyester filament production on the market, mainly the capacity release of leading enterprises. The capacity growth will be about 7.5%. Considering the operating rate and possible delay, the actual output growth rate is estimated at about 5%, compared with 2019.


Shen Gang securities analyst Cao Xute said that Heng Yi petrochemical in recent years, polyester volume, the future PX, PTA, MEG and other polyester raw material terminal expansion is larger, polyester cost end to maintain lax, and filament concentration degree also helps to maintain relatively stable prices, it is expected that filament price difference is expected to expand, and Hengyi Petrochemical will benefit. In addition, Cao Xute introduced that the raw material ends of the filament were mainly PX, PTA and ethylene glycol (MEG), and the main material of filament occupied more than 90% of its production cost. Due to the expansion of ethylene project under low oil price, the concentrated release of ethylene glycol in the future was superimposed on synthetic gas (technological progress, coal price ensured cost competitiveness, product color index optimization), and PTA compared with the two products mentioned above. For mild, but also higher than filament ends; in addition, filament expansion in the future is concentrated in the faucet, CR5 has 5pct promotion, so gentle expansion will get more favorable discourse for the filament ends.


According to public information, Hengyi Petrochemical Co., Ltd. is the core listed subsidiary of Zhejiang Hengyi Group Co., Ltd. (founded in 1974). Its predecessor was Xiaoshan County Yamen former commune knitting factory. In 1994, Hengyi group was formally established, forming a production and operation system of chemical fiber spinning, weaving, dyeing and finishing. In the year of 2001~2003, Hengyi polymer has been put into production one to three, and has gradually been stripped of textile and extended to the upstream polyester. In 2005~2009, more than 1000 sets of PTA have been put into operation. In 2011, the company was listed on the Guanghua Shenzhen Stock Exchange, which was put into operation in 2012.


In the 2017-2019 year, Hengyi Petrochemical Company acquired many polyester factories (3 million 300 thousand tons), such as Longteng, Ming Hui, Hongjian and so on. The polyester ginseng production capacity increased to 7 million 250 thousand tons, and the equity production capacity exceeded 6 million tons. In the future, with the Jiaxing ypeng three and Haining new material polyester put into operation, the capacity will reach 7 million 300 thousand tons. In addition, the company's PTA has 6 million 300 thousand tons of capacity and 200 thousand tons of caprolactam production capacity.


According to the results, as of the first three quarters of 2019, Hengyi petrochemical company achieved a business income of 60 billion 829 million yuan, an increase of 29.18% over the same period last year, achieving a net profit of 2 billion 205 million yuan attributable to the parent company, an increase of 63.20% over the same period last year. The company expects that from January 1, 2019 to December 31st, the net profit attributable to shareholders of Listed Companies in Hengyi Petrochemical Company is between 2 billion 800 million yuan and 3 billion 100 million yuan, an increase of 42.71%-58.00% over the same period last year, and a basic earnings per share of about 0.98 yuan / share -1.08 yuan / share.