Hengyi Petrochemical (000703): Q1 results in line with expectations Q2 results are expected to increase sequentially

Hengyi Petrochemical (000703): Q1 results in line with expectations Q2 results are expected to increase sequentially

Event: The company disclosed a quarterly report for 19 years, reporting that a series of companies realized operating income of 209.

7.6 billion, +5.

93%, net profit attributable to shareholders of listed companies.

23 trillion, -42.

88%.

The 成都桑拿网 net profit after deduction is 4

110,000 yuan, -36.

10%.

Main points: 1. Q1 is in line with expectations and Q2 performance is expected to improve.

Company Q1 achieved net profit attributable to mother 4.

2.3 billion.

The Q1PTA price rose from a low of 5,959 yuan / ton to 6,770 yuan / ton, and the price increased significantly.

But at the same time PX prices are also high, PTA profitability has improved, but high profitability has emerged.

Consolidating Q1 finance and increasing R & D expenses, Q1 performance was basically in line with expectations.

Recently, the price of PX has fallen by nearly $ 100 / ton, but the PTA spot has remained firm and the profit level of PTA has improved.

PX production in 19 is expected to be 1084, and the following years will also be the peak period of PX production.

With the 深圳spa会所 easing of PX supply, PTA profitability is expected to remain.

Q2 results are expected to improve sequentially.

2. The preliminary refining and chemical project of Brunei PMB800 Q2 is expected to be put into production.

The Brunei Refining and Chemical Project is currently in its full implementation phase. The investment of the project during the construction period has gradually reached USD 30.965 million, and the overall construction progress of the project has been gradually completed.

78%, the process pipeline installation is nearing completion, all units have been handed in as planned, and some public works have been driven.

Strive to start production in Q2.

3. Significant integration benefits of polyester mergers and acquisitions, and balanced development of the entire industry chain.

The company implements an industrial development model of “capital + mergers and acquisitions + integration”, and rapidly increases the production capacity of polyester fibers through mergers and acquisitions, new construction, and hosting.

At present, the company’s polyester production capacity reaches 630 tons. In the future, it will further increase polyester production capacity and consolidate the leading position of the polyester industry.

4. Profit forecast and rating.

The company’s net profit is expected to be 31 in 2019-2021.

75, 44.

24 and 54.

50,000 yuan, the corresponding EPS is 1.

12.1.

56、1.

90 yuan, corresponding to PE is 14, 10, 8 times.

Target price of 22.

0 yuan, given a “buy” rating.

Risk Warning: Downstream demand is less than expected.