The supply and demand pattern is improving! The net profit of 144 listed chemical companies doubled!

Introduction: Among the 434 listed chemical companies, 296 companies made profits in the first three quarters, accounting for 68.2%. Among them, 144 companies doubled their net profits, and only 28 companies lost net profits.

Due to the strengthening of energy consumption control in some provinces and cities, the supply of high-energy-consuming chemicals has decreased, and the price of raw materials has risen, the overall price index of chemical products is expected to continue to rise in the fourth quarter.

In the medium and long term, with the implementation of the "dual carbon" policy, the supply and demand pattern of the chemical industry is improving. At the same time, some chemical companies are entering the new energy field and are expected to achieve transformation and upgrading.

90% of the company's performance growth

Wind data shows that in the first three quarters of this year, the 406 companies in the chemical industry list had a positive net profit attributable to the parent in the first three quarters, with a total net profit attributable to the parent of 285.49 billion yuan; in the same period last year, 392 companies achieved a total net profit attributable to the parent of 125.103 billion yuan. Sinopec, Wanhua Chemical, Hengli Petrochemical, and Rongsheng Petrochemical ranked first in the scale of net profit attributable to their parent in the first three quarters.

Among them, in accordance with the Chinese Accounting Standards for Business Enterprises, Sinopec's net profit attributable to shareholders of the parent company in the first three quarters was 59.892 billion yuan, a year-on-year increase of 154.9%. Among them, in the third quarter, the company's main business income was 741.747 billion yuan, an increase of 42.79% year-on-year; the net profit attributable to the parent was 20.739 billion yuan, a year-on-year decrease of 55.39%.

In the first three quarters, Wanhua Chemical achieved operating income of 107.318 billion yuan, a year-on-year increase of 117.99%; realized net profit attributable to shareholders of listed companies to be 19.542 billion yuan, a year-on-year increase of 265.32%; basic earnings per share were 6.22 yuan. The company stated that the increase in the company's operating income during the reporting period was mainly due to the increase in product prices and sales volume during the current period.

Among the 434 companies mentioned above, 144 companies doubled their net profits. Among them, Duo Fluoride achieved operating income of 5.307 billion yuan in the first three quarters, a year-on-year increase of 85.36%; realized a net profit of 737 million yuan attributable to the parent, a year-on-year increase of 5316%.

Polyfluoride disclosed in the investor relations activity sheet recently disclosed that the company's current annual production capacity of lithium hexafluorophosphate products has reached 15,000 tons, and it is expected to ship about 13,000 tons by the end of 2021. By the end of 2022, it is planned to add 40,000 tons of new capacity. By then, the total production capacity will reach 55,000 tons per year, and the annual production and sales plan is to exceed 30,000 tons. For some time to come, due to the limited new capacity in the market and the strong demand growth, the company believes that the product market prices will continue to run at a high level.

Outstanding performance in the field of fine molecules

From the perspective of the subdivisions of the chemical industry, listed companies in the fields of yellow phosphorus, glyphosate, and titanium dioxide have performed well.

According to data monitored by Everbright Securities, as of the end of the third quarter of 2021, the China Chemical Product Price Index (CCPI) was 5,917 points, an increase of approximately 13.1% from the beginning of September 2021. Among the 136 chemical products tracked, the prices of 4 varieties of silicon metal (Kunming), liquid chlorine (Jiangsu), yellow phosphorus (Yunnan), and caustic soda (Jiangsu) increased by more than 100% in September. The price of fluorine refrigerant R134a, organic The prices of silicon DMC, Acetic anhydride, thermal coal, and acetic acid have risen by more than 50%.

Taking the leading phosphate fertilizer company Yuntianhua as an example, the company achieved operating income of 47.632 billion yuan in the first three quarters, a year-on-year increase of 19.35%; net profit attributable to shareholders of listed companies was 2.840 billion yuan, a year-on-year increase of 2583%.

According to data from the National Bureau of Statistics on October 25, the price of glyphosate was 77937.5 CNY/ton in mid-October 2021, which is nearly 200% higher than that of 28,470 CNY/ton in early January 2021. Affected by this, relevant listed companies have outstanding performance in the third quarterly report.

In the first three quarters, Hebang Biotechnology, which is mainly engaged in the sales of glyphosate, achieved operating income of 7.068 billion yuan, a year-on-year increase of 81.52%; realized net profit attributable to shareholders of listed companies of 2.013 billion yuan; deducted non-recurring gains and losses attributable to shareholders of listed companies The net profit increased by 1129.21% year-on-year. Among them, the net profit attributable to shareholders of listed companies was 1.099 billion yuan in the third quarter.

Soochow Securities Research Report pointed out that the dual energy consumption control policy has been accelerated, and the production of raw material yellow phosphorus has been significantly restricted or out of stock. It is expected that the production of yellow phosphorus in the fourth quarter of 2021 may be significantly restricted, and the cost will continue to increase the price of glyphosate.

Since the beginning of this year, the price of titanium dioxide has been on the rise. Affected by this, the performance of many titanium dioxide companies in the third quarter report also exceeded expectations. The third quarterly report of China Nuclear Titanium Dioxide showed that due to the rising volume and price of titanium dioxide, the company achieved revenue of 3.985 billion yuan in the first three quarters, a year-on-year increase of 46.77%; net profit attributable to shareholders of listed companies was 1.02 billion yuan, a year-on-year increase of 181.37% . Among them, the operating income in the third quarter was 1.375 billion yuan, a year-on-year increase of 27.63%; the net profit attributable to the parent was 345 million yuan, a year-on-year increase of 211.16%.

High prosperity is expected to continue

Since the beginning of this year, many chemical companies have entered the field of new energy. The latest survey summary of Fluoride shows that the company has begun to deploy lithium batteries in Nanning, Guangxi. The company said that in the future, the lithium battery sector will follow an orderly development strategy, expand product categories, reduce monomer costs, improve quality, and create better benefits.

Phosphorus chemical companies have also begun to deploy in the fields of new energy and new materials. On October 12, Hubei Yihua announced that the company and Ningbo Bangpu signed the "Agreement of Intention for Cooperation in the Project of Integrated Battery Materials Supporting Chemical Raw Materials" in Wuhan, Hubei Province, and reached a cooperation intention on the construction of the project of supporting chemical raw materials for integrated battery materials. According to the agreement, it intends to cooperate with Ningbo Bangpu in the field of new energy battery materials supporting chemical raw materials.

Looking ahead, Liu Wanpeng, chief analyst of Huaan Securities Chemical, said that the chemical sector in the fourth quarter will continue to be a structural market. The CICC research report shows that the strengthening of dual energy consumption control in some provinces and cities will result in a reduction in the supply of high-energy-consuming chemicals and an increase in raw material prices. It is expected that the overall chemical product price index will continue to show an upward trend in the fourth quarter.

In terms of fertilizers and pesticides, the Huatai Securities Research Report pointed out that since 2021, due to the high prices of global agricultural products, the price of agricultural materials has been increased, and the supply shortage and cost-side promotion are superimposed. In the second quarter of 2021, the global fertilizer price has reached a nearly 8-year high. , Pesticide prices are gradually rising. In the third quarter, driven by the cost of coal and overseas natural gas, superimposed power curtailment and poor start-up caused by summer maintenance, the prices of chemical fertilizers and pesticides continued to rise, and the yellow phosphorus industry chain and downstream glyphosate prices hit a record high. At the end of the third quarter Fertilizer prices have also risen to a new high in the past 12 years.

However, the growth of the industry is limited and product profitability is high. Huatai Securities believes that in the long run, as the global agricultural product prices fall, the industry lacks subsequent upward momentum.

In terms of titanium dioxide, the Huaan Securities Research Report pointed out that the price of titanium dioxide continues to rise in the context of rising titanium dioxide prosperity, increasing demand and limited new supply. At the same time, some titanium dioxide companies have begun to enter the field of new energy, producing iron phosphate or lithium iron phosphate, realizing the coupling of the titanium industry chain and the new energy industry chain.

Titanium Dioxide Company is expected to use by-product waste acid and ferrous sulfate as raw materials for the production of iron phosphate, which will greatly reduce production costs. As the titanium dioxide company accelerates its deployment in the field of new energy cathode materials, the titanium dioxide industry chain is expected to usher in a value revaluation.

In terms of industrial silicon, the Huatai Securities Research Report pointed out that due to the impact of power rationing in Yunnan, the supply has fallen sharply, causing the prices of industrial silicon and organic silicon to hit a record high, and the downstream procurement of silicon aluminum alloy and organic silicon has decreased. In terms of fluorine chemicals, driven by the cost-side sulfuric acid and fluorite prices, and superimposed on the impact of production restrictions under the dual control of energy consumption in Jiangsu, Zhejiang, Inner Mongolia and other places, the prices of fluorine chemicals will continue to pick up.

The research report of Shenwan Hongyuan pointed out that benefiting from the rapid growth of demand in the fields of new energy vehicles and energy storage, the demand for iron phosphate, the precursor of the cathode material lithium iron phosphate, has risen accordingly, and the phosphate fertilizer and phosphate chemical sectors have risen rapidly; as oil prices and natural gas continue to rise , The profitability of the nitrogen fertilizer and coal chemical industries continues to improve; under the background of carbon neutrality, the supply of Calcium Carbide has been tight for a long time, and the chlor-alkali industry is booming.