An Increase of Over 7200%! The Leaders of Chemical Enterprises Are Also Pre-increasing And Skyrocketing!

Dozens of chemicals start to soar

On the first trading day after the holiday, the domestic commodity futures market ushered in a "good start", and dozens of energy and chemical products soared after the start of construction. Among them, liquefied petroleum gas rose by 8.45%, asphalt, PTA, low-sulfur fuel oil rose by more than 5%, polyvinyl chloride, polyethylene, polypropylene, soda ash, crude oil rose by more than 4%, styrene, ethylene glycol, methanol, etc. rose slightly.

Overseas markets collectively rose, and A-shares made a good start. Previously, the market had high expectations for a "good start", mainly due to the collective strength of overseas markets during the holidays. During the Spring Festival holiday, there were frequent reports of good news in the international commodity market. The three leading commodities of crude oil, gold and copper rose one after another. The US stock market stabilized and rebounded as a whole. The Dow Jones Industrial Average, S&P 500, and Nasdaq all recorded gains, with a cumulative increase of 1.89% respectively. , 1.55%, 1.05%.

The Hong Kong stock market opened on the 4th and ushered in a good start to the Year of the Tiger. The Hang Seng Index opened higher and moved higher, closing sharply up 3.24%, and the Hang Seng Technology Index also rose by more than 3%. In addition, other Asian stock markets are also very strong. Japan's Nikkei 225 Index and South Korea's KOSPI Index rose by 2.7% and 3.26% respectively.

In terms of petrochemicals, Marathon Oil, Exxon Mobil, Total, and Bayer in the US stock market, and CNOOC and Tiande Chemical in the Hong Kong stock market all saw slight increases, which also made chemical workers feel more concerned about the tigers in Shanghai and Shenzhen. The opening of the first battle of the year placed great expectations.

In addition, the international crude oil has continued to rise recently and hit a new high in the past seven years, and the inventory is at a historically low level, there is a possibility of a squeeze-style surge. The international oil price broke through the US$90 mark, reaching a maximum of US$93.17, and Brent crude oil reached a maximum of US$93.70. Oil prices rose 17% in January, the biggest gain in January in at least 30 years, with major investment banks and oil companies predicting oil prices could soon top $100 a barrel.

With the end of the Spring Festival holiday in the Year of the Tiger, many industries have started construction one after another. In particular, the expansion of investment ends such as real estate and infrastructure has led to stronger demand, and just need to purchase commodities. On the whole, supply and demand will become the dominant factor affecting the price of chemical products again in 2022. As for whether the popularity will continue after the "good start", it is worth waiting and seeing.

The surge in raw materials has led to the pre-increase of leading chemical enterprises

In 2021, the chemical industry index will continue to rise. On January 27, the National Bureau of Statistics released the profit data of industrial enterprises above designated size in 2021, of which the total profit of chemical raw materials and chemical products manufacturing was 801.94 billion yuan, an increase of 87.8%. At present, the 2021 performance forecast of A-share listed companies has been gradually disclosed, and many chemical companies have maintained a steady growth trend.

According to incomplete statistics, 18 of the top 20 A-share listed companies in chemical raw materials have released performance forecasts for 2021, of which 17 have recorded a year-on-year increase in net profit, and 14 have increased their net profit by more than 100%.

Sichuan Hebang Biotechnology Co., Ltd. (Hebang Biotechnology, 603077), Inner Mongolia Yuanxing Energy Co., Ltd. (Yuanxing Energy, 000683), Polyfluoride New Materials Co., Ltd. (Duofluoride, 002407), Xinjiang Zhongtai The net profit of the four companies of Chemical Co., Ltd. (Zhongtai Chemical, 002092) increased by more than 1000% year-on-year. Among them, Hebang Bio is known as the "growth king" of A shares with an estimated 2021 net profit growth rate exceeding 72 times year-on-year. Hebang Bio is expected to achieve a net profit of 3 billion to 3.3 billion yuan in 2021, an increase of 7227.36% to 7960.09% compared to last year's net profit of 409 million yuan.

Wanhua Chemical Group Co., Ltd. (600309, Wanhua Chemical), a leading stock in chemical raw materials, is expected to achieve a net profit of 24 billion to 25.2 billion yuan attributable to shareholders of listed companies in 2021, a year-on-year increase of 139% to 151%; attributable to listed companies The non-net profit deducted by the company's shareholders was 24 billion yuan to 25.2 billion yuan, a year-on-year increase of 152% to 165%.

In addition, Ningxia Baofeng Energy Group Co., Ltd. (Baofeng Energy, 600989) is expected to achieve a net profit of 6.8 billion to 7.2 billion yuan attributable to shareholders of listed companies in 2021, a year-on-year increase of 47.10% to 55.75%.

Satellite Chemical Co., Ltd. (Satellite Chemical, 002648) is expected to achieve a net profit of 5.7 billion to 6.3 billion yuan attributable to shareholders of listed companies in 2021, a year-on-year increase of 243.17% to 279.29%.

Hubei Xingfa Chemical Group Co., Ltd. (Xingfa Group, 600141) is expected to achieve a net profit of 4.2 billion to 4.4 billion yuan attributable to shareholders of listed companies in 2021, a year-on-year increase of 573.14% to 605.19%.

Zhongtai Chemical expects that the net profit attributable to shareholders of listed companies in 2021 will be 2.65 billion to 2.75 billion yuan, a year-on-year increase of 1715.55% to 1784.06%.

Zibo Qixiang Tengda Chemical Co., Ltd. (Qixiang Tengda, 002408) is expected to realize a net profit attributable to shareholders of listed companies of 2.391 billion yuan to 2.556 billion yuan in 2021, a year-on-year increase of 145% to 162%.

Most companies said in their forecasts that the pre-increase in performance was mainly due to the boom cycle of the chemical industry in 2021, and the prices of main products of various companies such as glyphosate, lithium iron phosphate, silicone, yellow phosphorus, and soda ash increased significantly year-on-year.

Taking glyphosate as an example, as of January 13, the average domestic sales price of glyphosate was 78,000 CNY/ton, an increase of nearly four times compared to the previous average price of 20,000 CNY/ton. At present, the global glyphosate production capacity is about 1.1 million tons, and 70% of the production capacity is concentrated in China. In 2022, except for the 50,000-ton glyphosate production capacity rebuilt and expanded by Xingfa Group, there will be no new production capacity, but the global demand for glyphosate will continue to grow steadily.

In addition to being boosted by the increase in the price of chemical raw materials, many companies accelerated the layout of the industrial chain during the reporting period, and the results have been obvious. Qixiang Tengda stated in the forecast that the company aimed at the fields of high value-added fine chemicals and new chemical materials during the reporting period, and flexibly adjusted the production line at the production end to ensure the maximum output of profitable products.

Yuanxing Energy, which has caught up with the joint boost of the chemical and coal industries, will increase its net profit by 70 times year-on-year in 2021. Yuanxing Energy announced that it is expected that the net profit attributable to shareholders of listed companies will be 4.85 billion to 5.05 billion yuan in 2021, an increase of 7022.3% to 7316% year-on-year.

In addition to the price boost in the soda ash and urea sectors, Yuanxing Energy said that during the reporting period, the coal sector's contribution to the company's profits increased significantly compared with the previous year. During the superimposed reporting period, the company focused on its main business, resulting in a non-recurring profit and loss amount of about 21%. billion.

During the reporting period, Yuanxing Energy transferred the equities held in Inner Mongolia Boyuan Coal Chemical Co., Ltd., Inner Mongolia Boyuan United Chemical Co., Ltd. and Inner Mongolia Boyuan Water Co., Ltd.; cancelled its subsidiary Inner Mongolia Yuanxing Jiangshan Chemical Co., Ltd.; Terminated the ethylene glycol project construction.

The only company with pre-reduced performance, Kingfa Technology Co., Ltd. (Kfa Technology, 600143), announced that the net profit attributable to shareholders of listed companies in 2021 is expected to be 1.377 billion yuan to 1.932 billion yuan, a year-on-year decrease of 57.89% to 69.99% .

Regarding the pre-reduction in performance, Kingfa Technology stated that in 2021, the sales volume and selling price of the company's main products in the medical and health sector will decrease year-on-year; the raw material prices and material costs of the main products in the green petrochemical sector will increase; billion.

Yu Ze, a researcher at the China Academy of Economic Reform and Development of Renmin University of China, said that since 2021, chemical products have broken through the original cycle logic, driving up the prices of upstream production materials. In the global energy transition, the accelerated transformation of fossil energy into new materials has strong support for new chemical materials. Due to the time required for supply adjustment, some chemical raw materials will continue to be at a relatively high level for a period of time, and the chemical industry will gradually transform from a strong cyclical industry to an industry with certain growth potential.