Jiahua Energy (600273): A Total Of More Than 460 Million Yuan A Year "Draught" To Open Up Growth Space.

In April 17th, Jiaxing energy disclosed the 2019 annual report. During the reporting period, the company realized total revenue of 5 billion 370 million yuan, and realized net profit of 1 billion 230 million yuan, which increased 11.5% compared to the same period last year. Earnings per share were 0.88 yuan, up 17.33% over the same period last year. As of December 31, 2019, net assets belonging to shareholders of listed companies amounted to 6 billion 965 million yuan, up 6.48% from the end of last year.

It is worth mentioning that, on the one hand, the company intends to distribute cash dividends to all shareholders by 1.65 yuan (including tax) per 10 shares; on the other hand, on the basis of the increase in the main business performance, the company's highly concerned ethylene PVC project has entered the construction stage, opening up space for further growth of the company. Under the two superposition, the performance of Jiahua energy in the capital market will be worth looking forward to.

"Recycling economy" to consolidate the leading position

The company disclosed the annual report shows that in 2019, the company gross margin was 34.8%, an increase of 4.1 percentage points over the same period, the net interest rate was 22.9%, an increase of 3.2 percentage points over the same period last year. Market analysts believe that gross margins and net interest rates both rise again and again, and are closely related to the already established circular economy advantages.

The annual report shows that Jiahua energy is the core enterprise of the new chemical material (Jiaxing) park in China. In the park, a new industrial material chain, which is dominated by new chemical materials, has been established in the park.

Specifically, the company mainly uses CHP as the core device, and produces electricity and steam from advanced and efficient turbine units for the production of its own chemical plant. The chemical products and materials produced by chlor alkali, sulfonated pharmaceutical products, fatty alcohols, sulfuric acid and other chemical devices form a circular supply chain with other enterprises in the park.

In the process of implementation, Jiaxi energy has further built the "double circulation" mode. The so-called "internal recycling" is a circular supply chain constructed by CHP, which is linked to chlor alkali, sulfonated pharmaceuticals, fatty alcohols and sulfuric acid products.

Taking chlor alkali as an example, one of its main production costs is electrolysis, and the self produced electrical installations of the company can bring great cost advantages. "There is no doubt that this kind of" internal recycling "makes the company's single products more competitive, and the aggregation of more single products will enhance the overall efficiency and comprehensive strength of the company. Insiders analyzed that.

There is "outer circulation" besides "internal circulation". It is understood that Jiaxi energy is also relying on the cooperation between enterprises and the overall growth of the park and growing. At present, China's new chemical materials (Jiaxing) Industrial Park has formed an industrial system of new chemical materials, mainly engineering plastics, ethylene oxide, etc. all chemical enterprises in the park are linked into an ecological organism and a recycling circle of the park. In the chain of circular economy, which is closely linked with each other, the company plays a fundamental and core role as a supplier of steam heating and basic chemical products in the park.

Relying on the supporting advantages of the industrial chain in the chemical industry park, Jiaxin energy has been closely linked with many famous chemical enterprises in the park, forming a virtuous circle industrial chain of "resource products renewable resources", realizing the "integrated" circular economy development mode of public facilities, logistics and transportation, and environmental protection.

With the deepening of the circular economy, Jiahua energy has further strengthened its leading position in many industries. The annual report shows that, in the background of stable growth in the downstream market of fatty acid (acid), the company relies on the advantages of recycling economy and technological optimization. The product cost is further reduced and profitability improved further. In 2019, the sales of fatty acids (acid) products increased by 6.19% compared with the same period in 2018, and the operating income reached 1 billion 840 million yuan.

The global consumption of fatty alcohol is mainly concentrated in washing products, plasticizers and other personal care products. Therefore, from the industry point of view, the detergent industry as a daily consumer goods has great vitality. In the medium to long term, the good hygiene and consumption habits formed under the epidemic situation are conducive to the long-term stable demand growth of the washing products, and also bring a broader development prospect for the fatty alcohol (acid) industry.

Innovative business is a natural business.

While constantly consolidating the foundation, Jiaxing energy continues to take technological innovation as a strategic support for industrial transformation and upgrading, and constantly develops new profit growth points. In 2019, the company implemented 30 R & D projects and invested 193 million yuan in research and development.

High investment returns high returns. In 2019, BA, a newly developed high value-added new product of sulfonated medicine, successfully realized the stable operation of industrialization. Over 1500 tons of products were put into the market all year round, and achieved the target of business at the beginning of the year, which provided a powerful impetus for the development of sulfonated pharmaceutical industry.

At the same time, the production capacity of the company's TA production unit has been continuously improved. It not only solves the bottleneck of the subsequent development of sulfonated pharmaceutical industry, but also prepares for the upgrading of the downstream products such as sulfonated oil, methylsulfone toluene and amide.

Correspondingly, the annual report shows that the sales volume of the company's sulfonated pharmaceutical products reached 823 million yuan in 2019, an increase of 56.98% over the same period in 2018. Not only did it achieve rapid growth, but the gross profit margin of the sulfonated pharmaceutical products was as high as 60.7%.

If the outbreak of sulfonated medicine plate, let Jiaxi energy catch up with the draught. Then, the layout of hydrogen energy industry has injected "boosters" into the company's take-off.

Moreover, unlike many companies that deliberately transform themselves, the biggest feature of the hydrogen energy industry in Jiaxi energy distribution is "wonderful hands and occasionally gains". This is because the pipeline network in the park is the natural transport line and storage room of the company, and if the hydrogen generated from chlor alkali process can not be externally digested, the company can also use it.

This also means that the layout of hydrogen energy is of minimal risk to Jiaxi energy. On this basis, in 2019, the company signed a three party cooperation agreement with the American air products company and Sanjiang chemical industry. It fully utilized the advantage of hydrogen generated by the by-products of the company and the low cost industrial liquid nitrogen in the park, and introduced advanced liquid hydrogen production technology, which could realize the preparation and transportation of low cost large scale hydrogen, and speed up the layout of the hydrogen energy field.

In order to better promote the development of hydrogen energy infrastructure and fuel cell industry in the Yangtze River Delta region, the company also reorganized the hydrogen rich energy and Shanghai to set up Jiangsu Jiaxing Hydrogen Energy Technology Co., Ltd., which is committed to the investment, construction and operation of the hydrogenation stations in the Yangtze River Delta region.

Ethylene PVC brings strong "Dongfeng"

Rooted in the mature regional economy, circular economy mode and the fertile soil of continuous technological innovation, the advantage of Jiaxing energy transformation strategy lies in that it does not need to take the initiative to "rub" the draught. It only needs to wait for the wind after thick accumulation. The two business of sulfonated medicine and hydrogen energy is the best evidence.

In 2019, with the irreversible downward trend of ethylene price center, ethylene method PVC is gaining huge cost advantages compared with carbide method. Orient Securities research report pointed out that China's PVC industry structure accounted for 80% of the electric stone law, accounting for 20% of ethylene law, but since last year, with the price of ethylene dropped from 9000 yuan to 6000 yuan, the cost of ethylene PVC has also dropped significantly, thus the position in the entire PVC cost curve has been greatly improved, and it has the cost advantage of subverting the existing PVC pattern.

Moreover, as the future supply of ethylene is too large, it is estimated that the approximate price of 6000 yuan / ton will become normal. The cost of ethylene PVC is only 4500 yuan / ton, and ethylene PVC is expected to maintain high profitability for a long time.

It is this industry trend that once again brings great opportunities to Jiaxi energy. Since then, according to the company's own situation and industry judgement, Jiaxin energy has planned "300 thousand tons of functional polymer materials (PVC) project" and "300 thousand tons / year two chloroethane and vinyl chloride project (VCM)". The project adopted the balanced oxygen chlorine method, and carried out process argumentation, project record, EIA, approval and land reserve in 2019. At present, the project is listed in the "key construction project of Zhejiang Province in 2020" and has entered the construction stage.

It is worth mentioning that the above projects once again used the "recycling" concept that Jiaxin energy is good at: the use of "300 thousand tons of two chloroethane and vinyl chloride project" production of vinyl chloride (VCM), further construction of 300 thousand tons / year functional polymer materials project, production of polychloroethene (PVC) products, thus forming "thermoelectric chlor alkali vinyl chloride (VCM) - polyvinyl chloride (PVC)" circular economy. Product chain.

To actively meet the new outlet, Jiaxi energy intends to issue more than 1 billion 800 million yuan of convertible bonds for the construction of the above projects. In this regard, Zhongtai Securities Research Report believes that the Jiaxin energy chlor alkali industry chain is continuously improving. In the past 2018-2022 years, the global ethylene production capacity has expanded significantly, and the price of crude oil has been superimposed on the cost side. The price of ethylene is expected to continue downward and maintain at a low level. Ethylene method PVC has obvious cost advantages and strong profitability. The 300 thousand ton / year PVC project will greatly enhance the company's performance after its completion.

In a number of strong draught, Jia energy has been spared no effort in giving back to investors. In 2019,

The company has 2 profit distribution, including 230 million yuan in 2019, and 230 million yuan in 2019, accounting for 37.44% of the total net profit attributable to the common shareholders of the listed companies.

Orient Securities believes that in the past two years, the amount of annual repurchase and dividend payment of Jiaxi energy is between 8 and 900 million yuan, corresponding to the current market value, and its high proportion is very rare in A shares. Taking into account the PVC project's performance thickening, if the company can maintain a high dividend ratio, it has a certain investment value from the perspective of dividend return.