Aromatics-polyester industry chain is one of the most important chains in the petrochemical industry, with the upstream being the petrochemical industry , the midstream is the polyester industry, and the downstream is the textile and apparel industry. At present, the competition pattern of the domestic polyester industry chain has initially taken shape. The traditional competition situation is changing to a new competition model. The future petrochemical industry will be an ecosystem where private companies, state-owned enterprises, and foreign companies compete.
Aftertheacquisitionofa2.8million-tonPTAleaderwasstrandedduetotheepidemic,Thepolyestergiantisunwillingtogivein:keeppushingforward!
JiangsuSanfangxiangIndustrialCo.,Ltd.(hereinafterreferredtoasSanfangxiang,600370.SH)decidedtocontinuetoacquireJiangsuHailunPetrochemicalCo.,Ltd.(hereinafterreferredtoasHailunPetrochemical).
OntheeveningofMay11,SanfangxiangannouncedthatthecompanyhadreceivedadecisionfromtheChinaSecuritiesRegulatoryCommissiontodaynottoapprovethecompany’sapplicationforissuingsharestopurchaseassetsandraisesupportingfunds.
InAprilthisyear,SanfangxiangplannedtopurchaseHailunPetrochemical100heldbySanfangxiangGroup,SanfangxiangInternationalTrade,ShanghaiYouchang,andShanghaiHumabyissuingshares.%equity,withatransactionpriceof7.65billionyuan.
Whileissuingsharestopurchaseassets,Sanfangxiangalsoplanstoraisesupportingfundsofnomorethan800millionyuanfromanon-publicissuanceofsharesfromnomorethan35investors.Amongthem,400millionyuanisplannedtobeusedforHailunPetrochemicalPTAtechnicaltransformationproject,305millionyuanisusedtosupplementworkingcapital,andtheremainingfundsareusedforintermediariesandotherrelatedexpenses.
TheChinaSecuritiesRegulatoryCommission’s Mergers, Acquisitions and Reorganization Committee believes that, according to the application materials, Sanfangxiang failed to fully explain and disclose that the transaction is conducive to improving the company’s financial status and enhancing sustained profitability, and is inconsistent with the ” The relevant provisions of Article 43 of the Measures for the Administration of Major Asset Restructuring of Listed Companies.
In accordance with the requirements of the China Securities Regulatory Commission, the Sanfangxiang board of directors should make a resolution on whether to modify or terminate the reorganization matter within 10 days from the date of receipt of the above decision.
Sanfangxiang announced that after study by the board of directors, the company decided to continue to promote the restructuring matter.
The company’s board of directors believes that through this reorganization, the company’s main business can be further expanded to the production and sales of bottle-grade polyester chips and PTA, which will be conducive to optimizing the company’s business. Industrial layout and cultivating new profit growth points will help improve the company’s overall operating efficiency and are in line with the long-term interests of the company and all shareholders.
Sanfangxiang said that if the restructuring can be completed, the company will become a large-scale enterprise integrating the production and sales of bottle-grade polyester chips, the production and sales of PTA, and printing, dyeing and finishing. Integrated chemical enterprise.
PTA, purified terephthalic acid, is one of the terminal petrochemical products of crude oil and a front-end product of chemicals such as polyester. It is widely used in clothing, decoration, electronics, construction, etc. every industry.
According to the official website, Hailun Petrochemical is mainly engaged in the production and sales of bottle-grade polyester chips and PTA. The PTA production capacity is now 1.8 million tons. Last year, Hailun Petrochemical invested 4.515 billion yuan and planned to add 3.2 million tons of PTA production capacity, which will enable the company to form a total annual PTA production scale of 5 million tons.
Founder’s mid-term futures research report stated that 2012-2016 was the trough period of the PTA industry; from 2015-2018, PTA production capacity was slowly put into operation, and the industry’s backward production capacity was gradually cleared. In 2019, PTA is still in the boom cycle stage, and the overall production profits of manufacturing enterprises are relatively considerable.
At present, Sanfangxiang mainly operates three major business sectors: textile, chemical industry, and thermoelectricity, and is one of the top ten enterprises in the domestic printing and dyeing industry. Its main products include various types of cotton products, printed and dyed fabrics, polyester-cotton fabrics, yarn-dyed fabrics, etc.
Last year, Sanfangxiang’s revenue was 1.041 billion yuan, a year-on-year decrease of 11.9%; net profit was 55 million yuan, a year-on-year increase of 2.44%.
Sanfangxiang said that the company’s revenue decline last year was mainly due to fierce competition in the textile industry, the sales unit price of dyed and finished fabrics fell, and the gross profit margin decreased compared with the previous year.
The “second half” of the eight polyester giants: PTA has become the key to victory
Currently, the domestic polyester industry has formed a strong and prosperous industry. The industry structure is dominated by eight enterprises (groups) including Sheng, Tongkun, Hengyi, Shenghong, Xinfengming, Sanfangxiang and Sinopec, and is supplemented by a number of small and medium-sized enterprises. In the next 2 to 3 years, the expansion of the domestic polyester industry chain will be reflected in improving the industry chain and pursuing economies of scale, thereby enhancing comprehensive competitiveness and risk resistance.
At present, the focus of Rongsheng, Hengli and Shenghong has shifted to the upstream, leaping from PTA-polyester polyester to the more asset-heavy and large-scale refining and chemical industry, which means that in the short term There will be no spare capacity to expand the polyester industry on a large scale. Therefore, in the next few years, only three companies, Tongkun, Xinfengming and Hengyi, will really focus on the polyester industry. Among them, Tongkun and Xinfengming are industry leaders. These two companies have always adhered to the polyester filament yarn industry. The main business has become more refined and stronger. With its cost advantage, it has also achieved expansion against the trend during the industry trough in the past few years, gradually widening the scale gap with its competitors. In the future, while continuing to expand polyester, it will also extend upstream to realize raw materials. Matching.
In summary, after this round of refining window is opened, , except for Sinopec and Sanfangxiang, the six polyester giants have all embarked on the path of upstream development. In this round of refining and chemical expansion enterprises, the downstream PTA market share is very high (about 50%), and PTA will be synchronized in 2020 After the expansion, the PX-PTA-polyester industry chain will be highly integrated, and the competitive advantages brought by industrial synergy will also be stronger. In the future, many domestic small-scale, single-matching PX and PTA devices will face elimination, and aromatics-polyester The industrial chain may eventually move towards an oligopoly structure, and market competition will shift from product competition in the past to industrial chain competition.
If traditional polyester companies such as Sanfangxiang do not seize the opportunity to develop, Going back to catch up in the long term will greatly weaken competitiveness. Therefore, at this stage, it has lagged behind several other giants in expanding upstream. Purchasing high-quality assets has become the best shortcut for corporate development.
Considering the overall competitiveness of domestic petrochemicals, the domestic polyester industry chain is currently in the expansion and integration stage, especially the larger polyester companies in the industry, such as Tongkun, Rongsheng, Hengli, Hengyi, Shenghong, Sanfangxiang and Xinfengming, etc., are still adding or acquiring polyester production capacity, and at the same time extending their industrial chain to the upstream raw material industry. Among them, Yisheng and Hengli are already the first and second largest PTA manufacturers in China. Zhongjin Petrochemical, which is solely owned by Rongsheng, can produce PX. Zhejiang Petrochemical invested by Rongsheng and Tongkun and Hengli Petrochemical invested by Hengli are both expanding into the upstream refining industry chain. They can produce PX and MEG, and their ability to be self-sufficient is increasing. It is getting stronger and stronger.
Judging from the current scale and technical situation of PX, PTA and MEG devices of traditional enterprises, the technical level and scale (except for individual devices) are obviously lagging behind private enterprises in all aspects, and their competitiveness It is at a disadvantage and has eliminated production capacity. The continuous commissioning of new production capacity by private enterprises will quickly reduce the market share of polyester raw materials (PX, PTA, MEG) of traditional enterprises.
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