Satellite Petrochemical (002648): C3 industry returns to growth C2 project has construction conditions

Event: The company announced that it achieved revenue of 100 in 2018.

30,000 yuan, an annual increase of 22.

5%; realized net profit attributable to mother 9.

40,000 yuan, ten-year average of 0.


At the same time, it is predicted that the net profit of the mother will be returned to Q2 in 2019.


30,000 yuan, an increase of 103 in ten years.

3% -191.


18 years to achieve performance goals, the suspension of production in Jiaxing base has a great impact: Q1 18 net profit continued to shift 61.

21%, first of all, the Jiaxing base is facing the impact of gas supply unit accidents in the industrial park in the first quarter. In addition, the cost of introducing acrylic acid and (poly) propylene products has increased, and the gross profit margin has gradually decreased1.


77pct to 22.

51% / 14.

97%, affecting long-term performance growth.

However, the company achieved net profit attributable to its mother in the last three quarters by formulating an active and effective market strategy2.



1.7 billion, an increase of 10 in ten years.

93% / 40.

13% / 28.

70% to ensure long-term performance targets.

The first quarter of 2019 results are in line with expectations, and the new production speed of the C3 industry chain is accelerating: it is foreseen that net profit attributable to mothers in Q1 has increased by 103.

3% -191.

7%, in line with expectations.

According to Zhuochuang, the average price of acrylic acid / butyl acrylate / starch in East China from January to mid-March was 0.



770,000 yuan / ton, down 8 from the average price in the fourth quarter of 2018.

1% / 4.

1% / 10.

4%, the average price of core products acrylic acid increased by up to about 500 yuan, with the improvement of peak season demand, the main industry is expected to return to the growth track.

In February 2019, the company’s second phase of the PDH plant was successfully started. The first phase of the plant and the first phase of the 30 polypropylene polypropylene plant arranged annual maintenance during the off-season in January to lay the foundation for further high load.

In addition, 15 forecast / year polypropylene second-phase installations, 6 interest rates / year SAP three-phase projects, and 36 上海夜网论坛 forecast / year acrylic and ester phase I projects are progressing steadily in the first half of the year.

The C3 industry chain has been further improved, while achieving stable and profitable circular economy within the industry chain, reflecting comprehensive competitiveness.

The 320 benchmark light hydrocarbon comprehensive utilization and processing project was advanced in an orderly manner, and the prospect of expanding fractures is expected: the large-scale purchase agreement was completed in March 2018 and the US ORBIT transition export facility was jointly signed, and in July, the first phase of the large-scale approval was officially extended with Korean companies.The lease agreement of a large-scale special transport ship guarantees the supply of raw materials for the project.

The investment has been approved by the Zhejiang Provincial Development and Reform Commission and the Zhejiang Provincial Department of Commerce. The main equipment has been constructed, and the supporting storage tanks, docks and other facilities have been fully constructed.The raw materials for the company’s headquarters split project have been completely resolved.

The preliminary splitting process has a high conversion rate, which gradually decreases, and the yield reaches 80%. The by-products are mainly turbines with higher utilization value. The profitability after the production is expected to lead the industry.

Investment suggestion: EPS is expected to be 1 in 19-21.



03 yuan; give Buy-A investment rating, 6-month target price is 17.

2 yuan, corresponding to 14/10/8 times of 19-21 PE.

Risk reminder: The pressure on prices continues to fall, and the progress of expansion and division projects is less than expected.