Event description
According to the company's semi-annual report for 2022, the operating income from January to June in 2022 was 24.158 billion yuan, an increase of 29.42% over the same period last year; the net profit was 501 million yuan, down 25.22% from the same period last year; and the net cash flow from operating activities was-2.154 billion yuan, down 364.89% from the same period last year. Of this total, the operating income in the second quarter of 2022 was 13.464 billion yuan, an increase of 23.41% over the same period last year, and the net profit was 217 million yuan, an increase of 42.39% over the same period last year.
Event comment
The supply and demand of domestic refined oil is tightening, and aviation coal has the greatest potential for recovery. in the long run, the refining energy structure has been continuously optimized and the production capacity has been accelerated on a large scale. Due to the impact of the epidemic, the intensification of global trade frictions, the slowdown of domestic economic growth and the impact of the rapid development of new energy vehicles, the demand for oil products is weak; as the epidemic gradually alleviates, the demand for oil products begins to recover strongly. At the same time, with the normalization of economic activities in the future, the demand for aviation coal, which has been suppressed for a long time, will erupt strongly. Since the implementation of the relevant policies of carbon neutralization, the optimization of refining energy has been further strengthened, especially in Shandong area, the elimination speed of local refining capacity has been accelerated, the structural adjustment of refining energy has been obvious, and it has been continuously changing to large-scale, intensive, high-end and clean.
Layout of asphalt / lubricating oil comprehensive utilization industry chain. The company strengthens and enlarges naphthenic base lube base oil, optimizes and makes refined lubricating oil, extends industrial chain deeply, constantly optimizes and adjusts industrial product structure, builds naphthenic resource comprehensive deep processing industrial base of characteristic lubricating oil-high-grade road asphalt-new chemical material, and gradually forms a diversified industrial pattern dominated by asphalt, lubricating oil base oil, finished lubricating oil, fine products and so on. To specialize, characteristic, high-end, differentiation, fine development, to create asphalt / lubricating oil plate "upgrade version". In the first half of 2022, the company successfully completed the annual overhaul of 8 sets of equipment in the asphalt section.
Urea scene demeanor is high, the company airhead route cost advantage is significant. In 2021, Xinjiang Chemical Fertilizer Petrochina Company Limited Gas Pipeline Project was completed and put into operation. Jintianhua synthetic ammonia Plant, a wholly owned subsidiary of the company, has been built for more than 500days for the first time, and the two major chemical fertilizers of the company have produced a total of 1.38 million tons of urea. Operating performance reached the best level in history. The Jintianhua ammonia plant in the chemical fertilizer plate has been running continuously for 661 days in the new year, breaking the record of 629 days for continuous operation of the A class in the same industry in China, and has become a new navigation mark for continuous transportation of chemical fertilizer plants in the history of China's chemical industry. In the first half of 2022, the net profits of Jintianhua and Xinjiang chemical fertilizer were 148 million yuan and 151 million yuan respectively, and the total contribution of the two major chemical fertilizer enterprises reached 299 million yuan.
Multi-plate large-scale chemical platform, focusing on petrochemical, chemical fertilizer, asphalt / lubricating oil three pillar industries. The company has three production bases of Panjin in Liaoning, Huludao and Kuqa in Xinjiang, and large-scale chemical enterprises operated by many sectors. it has formed an annual production capacity of 8.3 million tons of crude oil processing, 500000 tons of ethylene, 800000 tons of polymerized resin, 1 million tons of road asphalt, 900000 tons of lube base oil and 1.32 million tons of urea, which is the platform for the weapons Industry Group to develop the petrochemical industry.
As one of the leading domestic refining and chemical integration companies, without considering future equity changes, the company's net profit from 2022 to 2024 is expected to be 1.14 billion yuan, 1.4 billion yuan and 1.55 billion yuan, corresponding to the closing price PE of 9.8x, 8.0x and 7.2x respectively on August 24, 2022, maintaining the "buy" rating.
Risk hint
1. Large fluctuations in international oil prices
2. the growth rate of downstream demand is not as fast as expected.
