The year 2020, which is full of variables, is coming to an end. At present, the intensive disclosure of the third quarter reports of various listed companies in the capital market has basically come to an end. What phase characteristics has the polyester market shown since the beginning of the year? Compared with the first half of the year, have the performance of listed companies in the third quarter improved? Under the influence of the epidemic, which type of enterprises have relatively strong ability to resist risks? The reporter combed through the third quarter reports and previously released semi-annual reports of six leading listed companies, Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, Tongkun Petrochemical, Xinfengming and Dongfang Shenghong, to analyze the reasons behind different performance performances.
The device at the Hengli refining and chemical integration project site.
The performance of the six leading polyester listed companies has varied performance
Hengli Petrochemical is the first company in my country’s chemical fiber industry to achieve “crude oil-PX-PTA-polymer” “Ester” enterprise with integrated management and development of the entire industry chain. Currently, the company’s chemical fiber industry chain has formed a complete industrial chain of “PX-PTA-polyester-civilian yarn, industrial yarn, polyester film, and engineering plastics”.
In the first three quarters, Hengli Petrochemical achieved revenue of 103.334 billion yuan, a year-on-year increase of 35.38%; net profit attributable to shareholders of listed companies was 9.896 billion yuan, a year-on-year increase of 45.16%. In the first half of the year, its revenue was 67.358 billion yuan, a year-on-year increase of 59.11%; the net profit attributable to shareholders of listed companies was 5.517 billion yuan, a year-on-year increase of 37.2%.
In the first three quarters, Rongsheng Petrochemical achieved revenue of 77.615 billion yuan, a year-on-year increase of 30.10%; net profit attributable to shareholders of listed companies was 5.652 billion yuan, a year-on-year increase of 206.17%.
In the first half of the year, its operating income was 50.282 billion yuan, a year-on-year increase of 27.32%; the net profit attributable to shareholders of the listed company was 3.208 billion yuan, a year-on-year increase of 206.55%. In terms of product segments, its polyester products achieved sales of 4.123 billion yuan, accounting for 8.2% of total revenue, a year-on-year decrease of 19.25%.
In the first three quarters, Hengyi Petrochemical achieved revenue of 61.321 billion yuan, a year-on-year decrease of 1.42%; net profit attributable to shareholders of listed companies was 3.057 billion yuan, a year-on-year increase of 38.09%.
In the first half of the year, its revenue was 39.414 billion yuan, a year-on-year decrease of 5.55%. As of the end of the first half of the year, Hengyi Petrochemical Ginseng Holdings had a PTA production capacity of 13.5 million tons/year, with a planned new PTA production capacity of 6 million tons/year under construction; a caprolactam production capacity of 400,000 tons/year; and a polyester fiber production capacity of 6.5 million tons. /year, the new polyester fiber production capacity under construction is 1.816 million tons/year; the polyester bottle flake production capacity is 2 million tons/year.
In the first three quarters, Tongkun Co., Ltd. achieved revenue of 32.819 billion yuan, a year-on-year decrease of 11.87%; net profit attributable to shareholders of listed companies was 1.802 billion yuan, a year-on-year decrease of 26.46%. In the first half of the year, its revenue was 21.343 billion yuan, a year-on-year decrease of 13.36%, and the net profit attributable to shareholders of the parent company was 1.012 billion yuan, a year-on-year decrease of 27.23%.
In the first three quarters, Xinfengming achieved revenue of 23.058 billion yuan, down 6.16% year-on-year; net profit attributable to shareholders of listed companies was 260 million yuan, down 76.51% year-on-year. In the first half of the year, Xinfengming achieved revenue of 13.565 billion yuan, a year-on-year decrease of 16.93%; the net profit attributable to the parent company was 202 million yuan, a year-on-year decrease of 65.70%.
In the first three quarters, Dongfang Shenghong achieved revenue of 15.645 billion yuan, down 16.50% year-on-year; net profit attributable to shareholders of listed companies was 236 million yuan, down 80.16% year-on-year.
“Overall, in the first three quarters of this year, affected by the epidemic, insufficient demand from the downstream consumer market is a major challenge facing the textile industry, and the prosperity of the chemical fiber industry is inevitably affected. There has been a decline. Listed polyester companies are basically large enterprises and need to ensure the continuous production of their devices. Although there are good production and sales ratios in certain periods, overall they face greater inventory pressure. From the specific company situation, since this year , 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.” A polyester industry insider said.
Falling product prices and insufficient demand have doubled the pressure on enterprises
The epidemic is the main factor affecting the operation of the polyester market this year. At the same time, the sharp fluctuations in crude oil prices have also continued. It affects the “nerve” of the market.
In the first half of the year, affected by the COVID-19 epidemic, demand in the textile downstream market shrank severely. At the same time, factors such as sharp fluctuations in international oil prices have superimposed. The main raw material of PTA and polyester products is crude oil. The price drop caused by the drop in oil prices is gradually transmitted from the front end to the downstream. The price of polyester products has declined to varying degrees in different time periods, and the overall price has been in the low price range for many years. Coupled with inventory accumulation, the profits of polyester products are under heavy pressure.
Another person in the polyester industry said that from January to February, affected by the traditional off-season during the Spring Festival holiday and the sudden outbreak of the domestic epidemic, companies basically focused on fighting the epidemic. After March, the domestic epidemic was gradually effectively prevented and controlled, but international crude oil prices plummeted, which was transmitted downward to PTA, ethylene glycol and polyester filament, resulting in continued decline in filament prices, shrinking transactions, and rising inventories. After entering the second quarter, my country’s epidemic situation has been basically effectively controlled, the internal circulation market and domestic consumption fundamentals have recovered, and the fundamentals of the polyester industry have gradually begun to recover. After April, international oil prices fluctuated upward after experiencing a sharp decline, which had a negative impact on the cost of chemical fiber.�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 the year, 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 been able to provide the company with PX and ethylene glycol required for the production of polyester products. At the same time, it has also contributed substantial investment income to the company. “Tongkun shares stated this in the announcement.
On November 1, 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 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 will It is expected to 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 three phases planned. 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 per year.
Since it was put into operation, the first phase of Hengyi Brunei Refining and Chemical Project has been operating smoothly, maintaining high-load production, and selling smooth products such as refined oil and chemicals.
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 certain batches of gasoline, diesel and aviation kerosene to Brunei. 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, and its competitive advantage continued to improve.
“Since the beginning of 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 the impact of external risks.” Hengyi Petrochemical said in the announcement Expression.
According to Hengyi Petrochemical’s previous announcement, the second phase of Hengyi Brunei Refining and Chemical Project will also build 14 million tons/year crude oil processing capacity, 1.5 million tons/year ethylene and 2 million tons/year. Annual PX production capacity.
After the second phase of the Brunei refining and chemical project is completed and put into operation, Hengyi Petrochemical will add an “ethylene-propylene-polypropylene” industrial chain, which will help improve the intensification, scale and operation of the Brunei refining and chemical project. The level of integration; it is also conducive to the integration, globalization and balanced coordinated operation of Hengyi Petrochemical’s industries, products and assets.
At present, Shenghong Group is also fully promoting the construction of refining and chemical integration projects. The scale of the Shenghong refining and chemical integration project is 16 million tons/year of oil refining, 2.8 million tons/year of paraxylene, 1.1 million tons/year of ethylene, etc. It is expected to be put into operation by the end of 2021.
In fact, from 2019 to 2020, one of the biggest features highlighted by the competition in my country’s polyester industry is that large leading companies have deeply implemented the integrated refining and chemical development model, and three private refineries have been put into operation. . Although this year has been affected by the epidemic, the company’s strategic thinking is clear, and project commissioning and new project construction are proceeding at full speed.
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-polyester-spinning” A deeply integrated development model such as silk-texturing has continuously achieved high-quality and efficient large-scale production, reduced costs, and enhanced overall risk resistance. Moreover, relying on the advantages of integration, leading companies have also continued to expand, hoping to seize the future The new share of 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
