2021YearDecemberMonth29, Sierbang Petrochemical No. 2, a subsidiary of Shenghong Group The propane industry chain project has another good news! 26Ten thousand tons/ Annual acrylonitrile (Ⅲ) The device was successfully started up in one go and produced qualified products. The overall production capacity of Sierpan acrylonitrile has been increased from 52 million tons/ to The annual production capacity of 78million tons/ ranks first in the country. This also marks the further implementation of Shenghong Group’s three million-ton new energy and new material projects.
In addition2022Year1Month5Nippon Oriental Shenghong released its annual performance forecast for 2021 in the evening. The company expects the net profit attributable to shareholders of listed companies during the reporting period to be 4.1billion to5.0billion, an increase of 435.00%—552.44% over the same period last year.
Welcome to the explosive performance, the first trading day immediately after the announcement——1 month6 At the opening of the day, the company’s stock price rose7.02%. Throughout 2021 , Dongfang Shenghong’s performance in the capital market has been remarkable, with its stock price rising by more than 1 times.
Why did Oriental Shenghong2021 achieve an astonishing performance in 2021?
As for the reasons for the change in performance, Dongfang Shenghong explained that it was mainly due to the recovery of demand in the chemical industry during the reporting period, coupled with the impact of rising crude oil prices, the increase in industry recovery and prosperity, and the further improvement of the company’s production and operations, maintaining a good Profitability. The production capacity of EVA photovoltaic resin produced by Sierbon is stable at 20 million tons/ Over 20 years, Ganghong Fiber’s annual output20 Ten thousand tons of differentiated functional chemical fiber projects and Zhongyu Technology’s annual output6Ten thousand tonsPET regenerated fiber project will be completed in the second half of 2020 It was put into production, which increased profit contribution year-on-year and other factors.
Industry insiders said here thatSince the fourth quarter of 2020, driven by oil prices and costs, internal and external demand has recovered, and the petrochemical and chemical fiber industries have experienced an upward trend. At the same time, Dongfang Shenghong’s subsidiary Ganghong Fiber20 million tons of differentiated functional chemical fiber project and Zhongyu Technology’s annual output6The 10,000-ton recycled fiber project was completed and put into production in the second half of 2020 and began to contribute performance in the first quarter. Honggang Petrochemical240 span>Ten thousand tonsPTA was put into production at the beginning of March and gradually released production capacity. The rise in volume and price of major products has helped the company’s performance rise significantly since the first half of 2021, achieving revenue of 15.7 billion yuan, a year-on-year increase of 65.4%, of which the chemical fiber and petrochemical businesses grew by 42% and 135%, the net profit attributable to the parent company reached 1.15 billion, a year-on-year increase 1720%, among which the chemical fiber business benefited from the improvement of industry prosperity and high product differentiation rate. The gross profit margin of the chemical fiber business increased from 2020 span>7% rose to 19%.
What needs to be seen is, 2021Year12MonthOn the 22nd, Dongfang Shenghong’s acquisition of Jiangsu Sierbang Petrochemical Co., Ltd. (Sirbang) was unconditionally approved by the Securities Regulatory Commission’s Listed Company Mergers, Acquisitions and Reorganization Review Committee. The first textile network is here.By the end of 2018, Sierpan’s main products were downstream derivatives of ethylene and propylene, including EVA with a production capacity of 300,000 tons ,EOand downstream derivatives production capacity4210,000 tons, acrylonitrile production capacity52 10,000 tons, MMA production capacity 17000 tons. As of 2021December, the company’s propane industry chain project is in the construction stage. After it is completed and put into operation, it will add 70Ten thousand tons/Annual propane dehydrogenation and supporting equipment26Ten thousand tons/Annual acrylonitrile, 8.5Ten thousand tons/yearsMMA production capacity.
Since the second half of 2020, the prosperity of the chemical industry has continued to rise. MMA, The prices and spreads of acrylonitrile and other products have increased significantly since the second half of 2020, and Sierpan’s profitability has subsequently increased. With the help of Dongfang Shenghong’s platform, Sierpan will further lay a solid foundation for its business development and enterprise construction, realize resource integration, complement each other’s advantages, and enhance its overall competitiveness.
Huang Wentao, an analyst at CITIC Securities, previously said that with the refining and chemical integration coming into operation soon, multiple projects will support the future development of Dongfang Shenghong. From observation, Shenghong Refining & Chemical1600 million tons/ The total annual investment in refining and chemical integration projects is approximately 677 billion yuan, the project is designed to have an annual output of 280 million tonsPX, 11010,000 tons of ethylene and downstream derivatives, and supporting 3010,000 tons of crude oil terminals and 45 10,000-ton liquid chemical terminals, etc. The Shenghong refining and chemical integration project has the largest single-line scale in China, with significant scale effects and strong cost competitiveness. In addition, the project will focus on high value-added aromatic products and olefin products, reducing the output of refined oil products to approximately 31% and the proportion of chemical products reaching 69%, the core productPX accounts for 17.5%, much higher than the average level of my country and the level of Japan and South Korea, fully exploring and giving full play to the supporting advantages of the industrial chain, achieving refinement of crude oil and full economic utilization. 2021Year6Month16Day, Sheng Hong Refining and Chemical Integration Project220KVThe power substation was successfully delivered and put into use, connecting the power network of the entire project, heading towards202120212021 span>The goal of putting it into production before the end of the year is progressing steadily. After being put into operation, the company will complete“crude oil refining-PX/ethylene glycol -PTA-Polyester”’s integrated industrial chain layout will form a chain starting from “A drop of oil”to“A thread” ‘s full industry chain business operations. According to the project feasibility report, the annual profit after production is expected to be 9.4 billion yuan. After the upstream large-scale refining and chemical project is put into operation, its olefin products can be used in Sierbon to produce high value-added products, which will vigorously develop Sierbon in the futureEVA, MMA and acrylonitrile provide abundant, safe, stable and raw materials, connect upstream and downstream, enhance the company’s risk resistance and profitability, empower the company’s downstream products, and further improve the layout of Dongfang Shenghong’s industrial chain.
In addition, Dongfang Shenghong also has multiple projects planned and under construction, among which the differentiated and functional fiber production capacity under construction reaches 95 million tons/In 2019, the planned POSM project design capacity will reach 20/45Ten thousand tons/Annual matchingPPGProduction capacity11.25 span>Ten thousand tons/year, POP production capacity2.5 span>Ten thousand tons/ years, multiple planned and under-construction projects will support the company’s future development.
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