Hengli Petrochemical First Quarter Open Door Net Profit Rose 323.84%

In the evening of April 23rd, Hengli Petrochemical (600346) disclosed the first quarter performance report. The company achieved operating income of 29 billion 771 million yuan in the first quarter of 2020, an increase of 97.77% over the same period, and a net profit of 2 billion 143 million yuan attributable to shareholders of listed companies, an increase of 323.84% over the same period last year, and its performance exceeded market expectations.

For the reasons for the growth of performance, the company said Hengli 20 million ton / year refining and chemical integration project formally implemented commercial operation in the two quarter of 2019. Driven by the new business pattern of the "-PX-PTA- polyester" whole industry chain, the company has refined the product management mode with the integration of upstream and downstream production capacity, achieving a significant increase in the scale of revenue and profitability.

According to the insiders, in addition to device maintenance or maintenance, refinery plant is always in the running state, so during the epidemic period, Hengli petrochemical refining plate still maintained high load, high efficiency, production and marketing smooth running situation, to ensure the supply of important petrochemical raw materials.

Guoxin Securities research report pointed out that in early 2020, though the polyester industry chain was greatly affected by the epidemic, Hengli Petrochemical used the lowest total operating cost and the best product structure to lock the most profitable industry chain profits, and the industry's downlink cycle could also get excess returns.

In fact, since Hengli 20 million tons / year refining and chemical integration project has been put into full operation, Hengli Petrochemical has entered the fast track of growth. According to the 2019 annual report, Hengli Petrochemical has achieved a turnover of 100 billion 782 million yuan in the whole year, breaking through 100 billion yuan for the first time, a significant increase of 67.78% over the same period last year. Net profit of 10 billion 112 million yuan, the first time into the 10 billion yuan, a significant increase of 197.21% over the same period last year, becoming the first profit of more than 10 billion private chemical enterprises.

Following the commissioning of the refining and chemical project, 2020 will be the second year for Hengli Petrochemical to promote the capacity of the whole industrial chain and the key period to realize the perfection of the whole industrial chain. The raw materials of Hengli 1 million 500 thousand ton / year ethylene project under construction are basically supplied by 20 million tons of upstream refineries. The ethylene plant is the largest in the world, and the ethylene yield is 48% the highest in China. The future ethylene project will produce all kinds of high-end chemicals in China, including 1 million 800 thousand tons of ethylene glycol, 720 thousand tons of styrene, 423 thousand tons of polypropylene, 400 thousand tons of high-density polyethylene, 140 thousand tons of butadiene, etc., which will greatly enhance the integrated processing capacity and added value of Hengli refinery.

It is reported that the entire Hengli ethylene plant commissioning, installation and transportation system optimization work is progressing smoothly, and is moving towards full load operation and the goal of full scale operation to accelerate. The largest ethylene project in the world will be put into operation soon. In addition, Hengli Petrochemical 5 million tons / year PTA project, 1 million 350 thousand tons / year multi-functional high quality textile new material project and 200 thousand tons / year high performance automotive industrial yarn technical transformation and other key projects will also be put into operation this year. All of the above projects are in full swing. Hengli Petrochemical is expected to achieve output value of 300 billion yuan and profits and taxes of 65 billion yuan.