Polyacrylamide: steady growth of downstream oil production auxiliaries
Due to the dependence of domestic oil production teams on auxiliaries, the company's third production auxiliaries polyacrylamide has been growing steadily.
Judging from the orders announced by the company, it is expected that the fourth quarter will not significantly exceed expectations.
The company's joint venture Bohong chemical project with an annual capacity of 10,000 tons of polyacrylamide is under construction; it is expected to make some contribution in 2013.
In addition, the company's cooperation into other major oilfields has been going on.
Acrylamide: double production
The company announced in December 2012 that the company plans to use 18 months to invest 70 million yuan with its own funds, on the basis of the original microbial acrylamide production technology and production capacity, using the company's independent research and development of multi-stage continuous biological reaction and separation coupling production process, the implementation of microbial continuous production of acrylamide technology upgrading project, so that the production capacity of acrylamide increased from 40,000 tons / year to 80,000 tons / year.
Acrylamide is the previous process of the company, doubling production capacity will help the company to expand the market share of acrylamide. But it mainly depends on the release of downstream demand.
Market development of fracturing fluid and other new products
The company mentioned in its 2011 annual report that "taking advantage of the opportunities brought about by unconventional reservoir production to strengthen the market development of new products such as fracturing fluid" is still being tested.
Profit forecast and valuation
Maintain the company's profit forecast. EPS in 2012-2014 was 74 times, 58 times and 47 times, respectively, taking into account
1. The rigidity growth of the company's third mining auxiliaries
2. the possibility of entering other large oil fields.
3. We maintain the company's overweight rating for possible breakthroughs in the company's fracturing fluid. At the same time, we will closely monitor the progress of the company in new business areas.