Currently, 399 listed companies in the chemical industry have announced their 2020 financial reports in the Shanghai and Shenzhen stock exchanges. Three companies have operating income exceeding 100 billion yuan, 6 companies have revenue of 50 billion to 100 billion yuan, and 37 companies have revenue of 10 billion to 50 billion yuan.
Sinopec’s highest revenue totaled 2,105.984 billion yuan, ranking first. Hengli Petrochemical ranks second, with revenue of 152.373 billion yuan in 2020. Rongsheng Petrochemical ranked third with revenue of 107.265 billion yuan.
The total operating income of the top ten companies totaled 2.83649 billion yuan. They are: Sinopec, Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, Zhongtai Chemical, Shanghai Petrochemical, Wanhua Chemical, Sinochem International, Yuntianhua, and Tongkun Chemical.
The following are the top 20 operating income of listed companies in the chemical industry in 2020:
Data source: China Commercial Industry Research Institute
Increase in order demand
The six polyester giants completed a turnaround in the fourth quarter
In recent years, as the leading factories in the domestic polyester industry have accelerated the pace of production capacity, the concentration of production capacity in the polyester industry has also increased. is gradually improving. According to statistics from Longzhong Information, as of the end of 2020, the total polyester production capacity of the six major factories, Hengyi, Tongkun, Xinfengming, Hengli, Shenghong and Rongsheng, was 25.88 million tons per year, accounting for The total domestic polyester production capacity accounts for more than 40%.
With the outbreak of the epidemic in 2020, polyester filament yarn and even the entire polyester industry are facing unprecedented difficulties, while international crude oil continues to bottom out, and epidemics occur repeatedly at home and abroad. As a result, end-use textile demand has plummeted. However, domestic production enterprises are still expanding their capacity. The contradiction between supply and demand of polyester filament is highlighted, and prices have fallen to a 30-year low. In the second half of the year, as the demand for textile and apparel orders increased, and with the help of the cost side, polyester filament completed a turnaround in the fourth quarter. In 2020, the main listed companies in the polyester industry, namely the leading polyester filament companies, have the courage to break through difficulties and obstacles and still achieve good results. results.
As shown in the table above, among the 6 major listed companies in the polyester industry in 2020, 4 of them showed positive growth in total operating income, among which Heng Li Petrochemical’s 2020 financial data industry position ranks first. In the sluggish environment last year, Hengli Petrochemical Group struggled to break through the siege, overcome all difficulties, increase risks, refine management, and promote the construction of various projects in an orderly manner, achieving outstanding results. The total operating income in 2020 was 152.373 billion yuan, an increase of 51.19% compared with 2019. The net profit attributable to shareholders of listed companies was 13.462 billion yuan, an increase of 34.28% compared with 2019. The return on net assets was 32.55%. The main reason for the significant increase in the company’s operating income, net profit attributable to shareholders of listed companies, net profit after non-deductions, and net cash flow generated from operating activities is that the 1.5 million tons of ethylene project, PTA-4 project, and PTA-5 project were put into operation in 2020. , the 20 million tons refining and chemical integration project increased production by 5 months compared with 2019, and the increase in trade volume caused a significant increase in the main operating data in 2020.
Operation income and net profit rose collectively
The four private refining and chemical giants remained strong in the first quarter
In recent years, the four major private petrochemical companies, Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical and Dongfang Shenghong, have focused on polyester, expanded upstream and downstream, and invested in construction. Large-scale integrated refining and chemical equipment to build a whole industry chain structure and improve profitability. Currently, listed companies are gradually disclosing their first quarter 2021 results. The performance of the four major private petrochemical giants is still impressive, with operating income and net profit all rising.
Since the fourth quarter of 2020, under the procyclical market conditions of the chemical industry, rising product prices have promoted high performance growth of related companies. After entering 2021, the chemical sub-industry is very prosperous, and the prices of plastics, PTA, ethylene glycol, n-butanol and other commodities have all increased. Benefiting from product price increases, downstream demand has increased, and product line operating rates have increased, which has directly driven the increase in operating income of the four major private petrochemical companies, with growth rates above 50%, and total revenue exceeding 125 billion yuan.
Data released by the National Bureau of Statistics on April 27 showed that, driven by factors such as rising commodity prices and continued recovery in demand, the profits of the chemical raw materials and chemical products industry increased by 3.43 times year-on-year. , 168.89 billion yuan; the petroleum, coal and other fuel processing industries turned losses into profits year-on-year, with new profits of 115.15 billion yuan.
The profit data of the four companies is the best evidence that the chemical industry’s profits maintain rapid growth. The total profits of these four companies exceeded 8.5 billion yuan, of which Dongfang Shenghong’s net profit was 600 million yuan, a year-on-year increase of 2 times; Rongsheng Petrochemical’s net profit was 2.6 billion yuan, a year-on-year increase of 1.14 times; Hengli Petrochemical’s net profit was 4.1 billion yuan, A year-on-year increase of 91.81%; Hengyi Petrochemical’s net profit was 1.213 billion yuan, a year-on-year increase of 48.71%.
Hengli Petrochemical released its first quarter report for 2021 on the evening of April 21. During the reporting period, the company achieved total operating income of 53.233 billion yuan, a year-on-year increase of 78.8%; net profit attributable to the parent company was 4.111 billion yuan, a year-on-year increase of 91.81%.
Hengyi Petrochemical released its first quarter report for 2021 on the evening of April 26. The report shows that in the first quarter of 2021, the company achieved operating income of 30.846 billion yuan, a year-on-year increase of 63.44%; net income attributable to shareholders of listed companiesProfit was 1.213 billion yuan, a year-on-year increase of 48.71%.
Rongsheng Petrochemical disclosed its first quarter report for 2021 on April 28. During the reporting period, the company achieved operating income of 34.581 billion yuan, a year-on-year increase of 64.26%, and net profit attributable to shareholders of listed companies of 2.622 billion yuan, a year-on-year increase of 113.86%.
Dongfang Shenghong released its first quarter report for 2021 on April 30. The report shows that in the first quarter of 2021, operating income was 6.465 billion yuan, a year-on-year increase of 52.77%; net profit attributable to shareholders of listed companies was 601 million yuan, a year-on-year increase of 205.29%.
Industry insiders pointed out that the global economy is expected to recover in the context of the “post-epidemic cycle”, which will effectively boost demand in the chemical industry. The chemical market experienced good growth in the first quarter, and the chemical market may achieve a “twice” in the second quarter.
CICC pointed out that there are two main driving factors for the significant improvement in the profitability of chemical companies: first, the global economy is recovering in the post-epidemic era, and terminal demand is gradually returning to normal; second, rising oil prices , the prices of bulk commodities and major chemicals have increased significantly year-on-year, thereby improving corporate profitability.
Guosheng Securities believes that driven by the continued recovery of the global economy and the replenishment cycle, the high prosperity of the chemical industry is expected to continue. From a performance perspective, the performance of leading chemical companies in the first quarter will exceed market expectations and will continue to improve quarter-on-quarter in the second quarter.
The National Bureau of Statistics stated that overall, the performance of industrial enterprises continued to recover rapidly in the first quarter, but it should also be noted that there are still major challenges in the global epidemic trend and the international environment. Uncertainty, recovery among industries is still uneven, especially the obvious rise in raw material prices has continued to increase the cost pressure on enterprises, and the foundation for the recovery of industrial enterprises’ efficiency still needs to be further consolidated. </p
