Hengli Shares Made 3 Billion 600 Million Net Profit In 2018, Relying On "Polyester Chemical Fiber +PTA" Two Wheel Drive!

The "aromatics industry chain" has driven the development of China's polyester filament industry, which has been growing rapidly in Hengli Formosa Petrochemical Co (hereinafter referred to as "Hengli stock").

In the evening of January 30th, Hengli shares disclosed the 2018 earnings announcement that it expected to achieve a net profit of 3 billion 600 million yuan attributable to shareholders of Listed Companies in 2018, an increase of 109.38% over the same period last year.

For the main reason for the company's performance increase in the reporting period, Hengli shares explained:

(1) during the reporting period, Hengli investment and Hengli refining will be included in the consolidated statements. The changes in the scope of the merger will increase the profits of the current period.

(two) during the reporting period, on the one hand, due to the improvement of the basic supply and demand pattern in the PTA industry, the company has 6 million 600 thousand tons / year PTA production facility, and now is the largest PTA production base in the world with the largest single capacity, and the PTA business profitability of the company is improved.

On the other hand, the polyester fiber business has maintained a relatively stable profit margin throughout the year.

Driven by the "double polyester +PTA" double wheel business, the company's upstream and downstream capacity integration collaborative product management mode effectively optimizes and improves the profitability of listed companies.

Insiders said that at present, Hengli refinery and petrochemical projects are in the process of putting into operation. Hengli shares will also have PTA-4, PTA-5 and Hengke new material 1 million 350 thousand tons polyester filament project put into operation in the next two years.

The rapid development of Hengli stock has not stopped. In the future, the polyester industry chain will extend vertically while strengthening the existing business of the company.

In the first three quarters of 2018, Hengli shares realized a net profit of 3 billion 652 million yuan attributable to shareholders of listed companies. According to the notice of performance, the net profit attributable to shareholders of listed companies was around 3 billion 600 million yuan in 2018, which means that the company suffered a slight loss in the four quarter of the third quarter.

In the fourth quarter of 2018, the price of PTA dropped rapidly, and crude oil prices went out of the bottom after October.

And under the double impact of falling crude oil and PTA prices, Hengli shares' four quarter results were much less than expected, dragging down annual performance.

Hengli shares continued to grow rapidly in the whole year, but the main product boom in the four quarter dragged down the performance of the company. Hengli's 20 million ton integrated refining and chemical integration project was put into trial run at the end of 2018, which is gradually playing the common downstream pressure reduction device. The project has many advantages in one scale, and the total scale and scale of the single device are ranked the top in the country. It can effectively reduce the investment in ton oil and the energy consumption per ton of crude oil, and the processing cost of single ton crude oil is low. The main oil refinery is medium heavy crude oil, and the raw material cost is lower relative to the light crude oil discount. At the same time, the complete facilities of the refining and chemical project are complete, which effectively reduces the crude oil unloading and pportation cost. In general, the refining and chemical project has strong competitiveness, and will become a new profit growth point of the company after its completion and operation. Xu Liuming, an analyst at Xingye securities, said that along with the prosperity of PTA, polyester filament business is booming.

In addition to refining and chemical projects, Hengli shares also expand the industrial chain, and build 1 million 500 thousand tons of ethylene projects, 5 million tons of PTA plants, 1 million 350 thousand tons of filament production capacity and 200 thousand tons of high-performance vehicle wire production capacity. With the planning of the project put into operation, the company's product types and scale will continue to expand.

What's more, we need to see that PTA's profit level has increased rapidly, helped Hengli share's performance grow faster, and the domestic PTA output has increased rapidly under the demand of terminal.

According to statistics, the output of domestic PTA in 2018 was about 40 million 563 thousand tons, an increase of 13.46% over the same period last year.

Rapid growth in demand has driven PTA upside up.

On average, the average PTA-PX price difference in 2018 was 889 yuan / ton, up 278 yuan / ton compared with 611 yuan / ton in the same period last year, and the improvement of PTA profit level helped the company's year-on-year performance increase year by year.

Public information shows that Hengli shares are the leading enterprises in the PTA industry. At this stage, PTA has 6 million 600 thousand tons of capacity, concentrated in the Hengli petrochemical plant in Dalian, and is the largest PTA factory in the world.

Downstream, the company has 1 million 550 thousand tons of polyester civilian filament production capacity, 200 thousand tons of industrial filament production capacity, 700 thousand tons of polyester chip production capacity, 200 thousand tons of polyester film production capacity, and 160 thousand tons of engineering plastics production capacity.

Upstream, the company is actively extending the industrial chain, and the 20 million tonne refining and chemical integration project has been put into operation at the end of 2018.

Xu Liuming believes that Hengli shares are gradually playing the usual downloading device. The project has PX capacity of 4 million 500 thousand tons. With the completion of the whole process of refining and chemical projects in the future, the company will form a -PX-PTA- polyester polyester whole industrial chain structure.

The company's 20 million ton refining and chemical project has the advantages of scale and matching, low processing cost and strong overall competitiveness, and will become a new profit growth point for listed companies in the future.

At the same time, when the refinery and petrochemical projects are put into operation, Hengli shares is also actively promoting the construction of Hengli Dalian's 1 million 500 thousand tons of 10000 ton ethylene project. With the ethylene project being put into operation in the future, the company can not only optimize the existing refinery product structure, but also increase the product category, and the diversification of products will enhance the company's ability to resist the risk of cyclical fluctuations.

In addition to the upstream refining and chemical projects, Hengli shares also actively expand the existing PTA- polyester industry chain: the company plans to build two sets of 2 million 500 thousand tons of PTA units, or will be put into operation before and after the end of 2019. After the completion of the operation, the company will have 11 million 600 thousand tons of PTA capacity and further consolidate the leading position of the PTA industry. The company plans to build 1 million 350 thousand tons of civilian filament projects in Hengke new material, and the project will be constructed in batches and put into production in a batch manner. The construction period is 48 months, and it is expected to be put into operation before and after 2022. In addition, Hengli Chemical fiber intends to use the existing polyester chip capacity to build 200 thousand tons of high-performance vehicle wire project, with a construction period of two years, and is expected to be put into operation before and after 2020.

With the completion and operation of the new planning project, Hengli shares will continue to expand its existing polyester polyester industry chain.