On the evening of April 26, chemical fiber giant Hengyi Petrochemical (000703.SZ) disclosed its first financial report for 2021. Data show that in the first quarter of 2021, Hengyi Petrochemical achieved operating income of 30.846 billion yuan, a year-on-year increase of 63.44%; net profit attributable to shareholders of listed companies was 1.213 billion yuan, a year-on-year increase of 48.71%. Total assets exceeded 100 billion yuan and reached 100.026 billion yuan.
Polyester filament prices are gradually recovering Hengyi polyester industry chain is benefiting
In2020,thepricedifferenceofpolyesterfilamentwillchangegreatlyduetotheepidemic.Itisunderstoodthatinthefirsthalfof2020,thepricedifferenceofpolyesterfilamentyarnswasaffectedbythereductionindemandandaccumulatedinventoryinthedownstreamtextileandgarmentindustry,andshowedanoveralldownwardtrend;inthesecondquarter,asthedemandforoverseasepidemicpreventionmaterialsrebounded,theexportofpolyesterfilamentyarnsincreased,theinventoryfell,andthepricedifferenceUsheredinaslightrebound.Inthethirdquarter,theglobaltextileandapparelindustryenteredarestockingcycle,andthedemandforpolyesterfilamentpickedupandenteredanupwardcycle.Inthefirstquarterof2021,affectedbytherecoveryoftheepidemic,polyesterfilamentsawalargeincrease.CCFdatashowsthattakingthefilamentproductDTY150D/48Fasanexample,itsproductpriceincreasedbymorethan60%inthefirstquarter.
Thesurveyshowsthatmostoftheproductioncapacityofthepolyesterindustry,representedbypolyesteryarn,isconcentratedintheAsia-Pacificregion,andChinaistheworld’slargesttextileproducerandexporter,CCFdataItshowsthatin2020,theconcentrationofpolyesterproductioncapacitywillfurtherincrease,withCR6(thetopsixcompaniesintheindustry)accountingfor66%,polyesterstaplefiberproductioncapacityreaching7.92milliontons,ayear-on-yearincreaseof4.4%,andpolyesterbottleflakeproductioncapacityreaching11.96milliontons./Year.
Astheworld’sleadingpolyesterfiber(PET)company,HengyiPetrochemicalisoneofthelargestsuppliersoftextilerawmaterialsinChina.Inrecentyears,Hengyihascontinuouslyimproveditsdifferentiatedfibervarieties.proportion,andacceleratethedevelopmentofcustomizedproductstomeetthedifferentiatedandpersonalizedneedsofthemarket.Asofnow,thecompany’spolyesterproductioncapacityis7.5milliontons,anditspolymerizationcapacityranksfirstinthecountry.Specifically,thefilamentproductioncapacityis6.62milliontons,theshortfiberproductioncapacityis880,000tons,andthebottleflakesare2milliontonsperyear.Theproductioncapacityscaleranksamongthetopinthecountry.
Thecrackingspreadofrefinedoilproductshasstrengthened,andHengyiBrunei’sprofitmarginhasopenedup
In 2021, overseas economies will gradually recover, and refinery crack spreads will continue to strengthen. Platts data shows that due to the impact of the epidemic in 2020, the crack spread of refined oil products is at its lowest level in history. As the epidemic situation in Southeast Asian countries gradually improves, downstream demand picks up, and the crack price spreads of various refined oil products are on an upward recovery path.
From a supply and demand perspective, compared with the oversupply of domestic refined oil products, there is a large gap in the Southeast Asian refined oil market. Platts data shows that from a supply perspective, Southeast Asia’s existing production capacity is about 277 million tons per year. Due to the early construction and operation of some refinery units for 40-50 years, old technology, poor management, and heavy government subsidy burdens, etc. The reason is that the shut-down production capacity in Asia in the past three years is expected to reach 70.15 million tons. In Southeast Asia, only Brunei, Indonesia and Malaysia have slightly increased production.
In 2021, entering the post-epidemic era, the supply capacity of the entire refinery in Southeast Asia is declining instead of increasing. It is expected that the market will continue to maintain the import trend of refined oil every year, and As the epidemic gradually recovers, refined oil imports will continue to rebound. At the same time, as the cracking spread gradually recovers, new market-oriented refineries may see a rebound in profitability.
It is reported that Hengyi Brunei Refining and Chemical Co., Ltd., which is located in the hinterland of Southeast Asia’s refined oil market demand, has produced a large number of marketable non-standard products based on accurate research and judgment of the market in the face of the impact of the epidemic. , through full-process simulation calculation and optimization of production blending formulas, we can select cost-effective raw materials to meet production needs while effectively reducing raw material procurement costs and continuously increasing certainty in performance contribution.
Judging from the first quarter, Hengyi’s chemical fiber industry is in a development window period. In the post-epidemic era, Hengyi will seize the trend of domestic consumption upgrading, continuously improve product quality and technological added value, explore new demands in the industrial chain, integrate and coordinate industrial chain resources, rely on strategic development plans, continue to consolidate and enhance the competitiveness of its main business, and comprehensively Enhance the company’s comprehensive competitiveness and strive unremittingly for the grand corporate vision of becoming “one of the world’s first-class petrochemical industry groups”. </p
