Sinochem International released its semi-annual report for 2022, with revenue of 44.413 billion yuan in the first half of the year, an increase of 13.96% over the same period last year, a net profit of 974 million yuan, an increase of-54.55%, and a net profit of 868 million yuan, up 44.46% over the same period last year. Among them, the company realized operating income of 25.569 billion yuan in the second quarter, an increase of 18.64% over the same period last year, an increase of 35.69% over the same period last year, a net profit of 580 million yuan, an increase of-68.49%, an increase of 47.26%, and a net profit of 553 million yuan, an increase of 116.21% over the same period last year and 75.34% month-on-month growth. Mainly due to the sale of Yangnong shares by the company in the same period last year, excluding the impact of the sale of Yangnong shares, the income in the first half of the year increased by 38% compared with the same period last year, the net profit increased by about 113% compared with the same period last year, and the net profit after deducting it increased by about 77%. There was a big increase in the second quarter compared with the previous quarter.
Profit repair of caustic soda and other products in the second quarter. Chlor-alkali products: according to the company announcement, the average sales price of chlor-alkali products in the second quarter was 2887 yuan / ton, up 45.91% from the previous quarter. At the same time, the price of raw material salt decreased in the second quarter, according to Baichuan Yingfu data, the average market price of raw salt in the second quarter was 422 yuan / ton, down 6.46% from the previous quarter, product prices rose sharply and raw material salt prices fell, and the profitability of the company's chlor-alkali products was significantly repaired. Rubber antioxidants: the company sold 43300 tons of rubber antioxidants in the second quarter, an increase of 28.31% over the previous quarter. At the same time, the average sales price of rubber antioxidant products in the second quarter was 317,000 yuan / ton, up 3.72% from the previous quarter. The profits of caustic soda and other products were significantly repaired in the second quarter, which promoted the company's second-quarter performance to achieve significant month-on-month growth.
The C 3 project will be fully put into production soon, and the integrated layout of the industrial chain will be improved. According to the company announcement, the first phase of the carbon three industry project is proposed to produce 600000 tons of propane dehydrogenation, 650000 tons of phenol acetone, 240000 tons of bisphenol A, 400000 tons of epichlorohydrin and 150000 tons of epichlorohydrin. Up to now, hydrogen peroxide process 150000 tons / year ECH has been put into production in the first quarter of 2022, phenol / acetone, bisphenol A will be put into production in October 2022, with the project completed and put into production, the company will form a "PDH propylene-phenol acetone-bisphenol A / epichlorohydrin-epoxy resin" integrated industry chain to further consolidate the competitive advantage of the epoxy resin industry chain.
Maintain earnings forecasts and maintain "buy" ratings. The company's caustic soda products profit repair, while the epoxy resin industry chain is further improved, we maintain the profit forecast, the company is expected to achieve home net profit of 1.597 million yuan in 2022-2023, an increase of 3.13 billion yuan in 2024 net profit, corresponding to 13X/8X/6X, respectively, maintaining the "buy" rating.
Risk hint: demand is declining and capacity expansion is not as expected.