Recently, the list of the top 500 listed companies in China by market value was announced. Data show that at the end of 2020, the total market value of the top 500 companies was approximately 86.0 trillion yuan, an increase of 35% from 63.7 trillion yuan in 2019. Among them, 5 polyester companies have entered the top 500, with a market value of 520.1 billion yuan.
Top 500 Chinese companies by market value in 2020 (polyester companies)
It is understood that this time The market value threshold for the top 500 companies has been raised to more than 38 billion yuan, an increase of more than 10 billion yuan compared with the end of 2019, setting a record high.
With the implementation of the bailout policy to protect market entities and help enterprises, and against the background of the effective control of the domestic epidemic, China’s economy has recovered steadily, showing a trend of improvement quarter by quarter, and the industry’s prosperity has Driven by the domestic and international dual cycles, sales continued to improve, with some refining and chemical companies performing better.
2020 is a period when large-scale domestic refining and chemical projects are put into operation. Driven by demand due to factors such as the advent of cyclicality and the transfer of overseas orders, organic growth has occurred, and main operating income has continued to increase. , the strong are always strong, and the rankings of Hengli Petrochemical, Rongsheng Petrochemical, Dongfang Hongsheng, and Tongkun have all improved compared with the previous year. Among them, Hengli Petrochemical and Rongsheng Petrochemical are far ahead of the other three companies with a market value of nearly 200 billion.
Affected by the epidemic since 2020, insufficient demand from the downstream consumer market has been a major challenge facing the textile industry, and the prosperity of the chemical fiber industry has inevitably declined. Listed polyester companies are basically large-scale enterprises that need to ensure continuous production of their devices. Although there are good production and sales ratios in certain periods, overall they face greater inventory pressure. Judging from the specific situation of enterprises, enterprises that implemented a balanced upstream and downstream integrated development strategy earlier have demonstrated good competitive advantages and risk resistance in the process of coping with this severe market situation.
“In this year’s market conditions, companies with upstream and downstream integrated supporting facilities will have a relatively easy life.” Many people in the polyester industry told reporters. This can also be reflected in the performance of listed companies.
Hengli Petrochemical’s 20 million tons/year refining and chemical integration project achieved full production in May 2019, making it a key player in refining and aromatics A strategic breakthrough has been achieved in the production capacity link.
Currently, Hengli Petrochemical has a design production capacity of 4.5 million tons of PX per year, which can basically meet the raw material demand for PX for the next PTA production capacity. In the first half of 2020, Hengli Petrochemical (Dalian) Refining and Chemical Co., Ltd. achieved a net profit of 4.62 billion yuan; in the third quarter, its performance continued to be outstanding, mainly due to the profit growth contributed by the refining and chemical segment.
Rongsheng Petrochemical is the controlling shareholder of Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project, and Tongkun Petrochemical is a participating shareholder of the refining and chemical project. In early January this year, the Zhejiang Petrochemical Refining and Chemical Project (Phase I) completed the entire process and achieved full production. Since it was fully put into operation, the production of its various devices has been progressing smoothly, the operating load has steadily increased, and profitability has gradually increased.
In the first half of 2020, Rongsheng Petrochemical’s refining products achieved sales of 13.347 billion yuan, accounting for 26.54% of revenue, and the gross profit margin was 20.98%; chemical products achieved sales The amount was 18.43 billion yuan, accounting for 36.65% of revenue, a year-on-year increase of 98.55%, and the gross profit margin was 33.51%; PTA’s sales amount was 7.056 billion yuan, accounting for 14.03% of revenue, a year-on-year decrease of 26.91%, and the gross profit rate was 33.51%. is 5.78%. Rongsheng Petrochemical’s petrochemical segment sales totaled 38.834 billion yuan, accounting for 77.23% of total revenue and a year-on-year increase of 105.07%. Judging from Zhejiang Petrochemical’s own performance, in the first half of the year, Zhejiang Petrochemical achieved revenue of 27.541 billion yuan and net profit of 4.488 billion yuan.
Rongsheng Petrochemical stated that the Zhejiang Petrochemical Refining and Chemical Integration Project (Phase I) has achieved significant benefits since it was completed and put into operation. In the first half of the year, despite the impact of the epidemic, the refining and chemical segment made significant profits and contributed most of the performance. The main reason for the substantial growth in the company’s revenue in the first three quarters was also due to the increase in product sales revenue from the Zhejiang Petrochemical Project (Phase I).
In the first half of 2020, the Zhejiang Petrochemical Refining and Chemical Integration Project (Phase I) contributed 896 million yuan in revenue to Tongkun Co., Ltd., becoming the main source of its profits. “Since the Zhejiang Petrochemical Project was put into operation, it has stabilized the company’s raw material supply and can provide the company with PX and ethylene glycol required for the production of polyester products. At the same time, it has also contributed generous investment income to the company.” Tongkun shares in the announcement Expressed this way. On November 1, 2020, the first batch of units (atmospheric and vacuum units, etc.) of the Zhejiang Petrochemical Refining and Chemical Integration Project (Phase II) were put into operation. On November 3, Rongsheng Petrochemical and Tongkun Petrochemical Co., Ltd. both issued announcements announcing that the project (Phase II) was put into production.
Regarding the significance of the implementation of the refining and chemical project, Rongsheng Petrochemical stated that the Zhejiang Petrochemical project is a key part of the company’s insistence on implementing the “vertical and horizontal cross-two-way development” strategy, and the project has obvious competitive advantages . By continuously extending the industrial chain, the company has not only enhanced its risk resistance but also improved its sustainable profitability.
Zhang Wangqiang, analyst of the energy and chemical sector of Essence Securities, also predicts: “In the fourth quarter, benefiting from the gradual recovery of the textile consumer market, the recovery of the chemical fiber industry chain, and the expansion of gas station channels , Rongsheng Petrochemical’s performance is�Further increase volume and increase efficiency. In the long term, the second phase of the Zhejiang Petrochemical Project is currently progressing smoothly, and there are still plans for the third phase. The world’s leading refining and chemical base is gradually taking shape, which will push the company’s profit scale to a new level. ”
The Hengyi Brunei Refining and Chemical Project is one of the key projects of the “Belt and Road Initiative”. The first phase of the project was fully put into operation in November 2019. Currently , Hengyi Petrochemical’s crude oil processing design capacity is 8 million tons/year.
Since it was put into operation, the first phase of Hengyi Brunei Refining and Chemical Project has been operating smoothly, continuing to maintain high-load production, and sales of refined oil, chemicals and other products are smooth.
In the first half of this year, the project produced a total of 4.03 million tons of products, including 940,000 tons of chemical products and 3.09 million tons of refining products. At the same time, the project began to supply a certain batch of gasoline and diesel to Brunei. and aviation kerosene. In the first half of the year, the project’s refining products and chemical products achieved sales revenue of 9.046 billion yuan and 1.542 billion yuan (external sales amount) respectively; Hengyi Brunei achieved revenue of 11.493 billion yuan and net profit of 564 million yuan, competing The advantages continue to improve.
“Since this year, the Brunei refining and chemical project has adhered to the low inventory strategy and timely increased the production of diesel and reduced the production of aviation kerosene according to market demand, which has greatly resisted external risks. impact. Hengyi Petrochemical stated this in the announcement.
According to Hengyi Petrochemical’s previous announcement, the second phase of Hengyi Brunei Refining and Chemical Project will also build a capacity of 14 million tons per year. of crude oil processing capacity, 1.5 million tons/year ethylene and 2 million tons/year PX production capacity.
After the second phase of the Brunei Refining and Chemical Project is completed and put into operation, Hengyi Petrochemical will add new The “ethylene-propylene-polypropylene” industrial chain will be conducive to improving the intensification, scale and integration level of Brunei’s refining and chemical projects; it will also be conducive to the integration, globalization and balance of Hengyi Petrochemical’s industries, products and assets. chemical collaborative operation.
At present, Shenghong Group is also fully promoting the construction of refining and chemical integration projects. The Shenghong refining and chemical integration project scale is 16 million tons/year of refining, 2.8 million tons/year paraxylene, 1.1 million tons/year ethylene, etc. are expected to be put into production at the end of 2021.
In fact, from 2019 to 2020, one of the biggest features highlighted by competition in China’s polyester industry , that is, large leading enterprises have deeply implemented the integrated refining and chemical development model, and three private refineries have been put into operation one after another. Although affected by the epidemic, the strategic thinking of the company is clear, and project commissioning and new project construction are fully promoted.
The above-mentioned polyester industry insiders said: “With the release of PX production capacity in private refining projects, large leaders are focusing on building ‘crude oil-aromatics (PX) and olefins-PTA and MEG The deeply integrated development model of “polyester-spinning-texturing” continuously achieves high-quality and efficient large-scale production, reduces costs, and enhances the overall ability to resist risks. Moreover, relying on the advantages of integration, leading companies are also constantly expanding, hoping to seize the new share of future market demand. At the same time, with the gradual withdrawal of old small and medium-sized production capacity in the polyester market, the market share of “head” companies continues to increase, and the degree of centralization of the polyester market further increases. ”</p
