On the evening of April 27, Hengli Co., Ltd. released the first quarterly report of 2018. The report showed that the company achieved operating income of 11.584 billion yuan in the first quarter, an increase of 32.97% year-on-year, and achieved a net profit of 1.103 billion yuan. The single-quarter earnings exceeded for the first time. One billion yuan, an increase of 68.47%, greatly exceeded the market's expectations. Now, both the listed companies' profitability in 2017 and the first quarter of 2018 achieved a qualitative and quantitative double breakthrough, showing continued improvement.
The substantial increase in PTA's performance is the main driving force for the company's profit improvement
(The picture shows Hengli Petrochemical bulk grocery terminal)
It is reported that Hengli’s shares achieved stable revenue growth and significant improvement in performance in the first quarter of the same period last year, partly because the company’s original polyester product income and gross profit margin stabilized on a year-on-year basis. On the other hand, it was After reorganizing the 6.6 million tons of PTA production capacity of Hengli Petrochemical, one of the restructured underlying assets, into the scope of the consolidated statement, it benefited from the margin expansion of PTA spread and the marginal restoration of profit, which increased the gross margin of single quarter, and the overall profitability of listed companies. Significant improvement over the same period last year.
As a global PTA plant with the largest single unit production capacity, comprehensive matching and optimal technology, and first-class technology, Hengli Petrochemical has formed a leading company based on scale, process, supporting and management advantages, and Hengli Petrochemical is operating in a concrete manner. Actively implemented strategies such as flexible raw material purchases, flexible sales mechanisms and strong spot pricing further strengthened its market dominance. Overlay income tax made up for previous year's losses and favorable factors such as the year-on-year increase in PTA sales volume. Hengli Petrochemical in the first quarter It has achieved relatively good business results. The market also generally believes that under the background of the accelerated recovery of the PTA industry and the extended business cycle of the polyester business, Hengda’s PTA production capacity of 6.6 million tons and the polyester production capacity of 2.7 million tons will fully benefit from The recovery trend of the 'PTA-polyester' industrial chain has boosted the scale and efficiency of business operations.
The major investment projects such as refinery and ethylene are steadily implemented
(Constant Power Petrochemical Plant Area)
At the same time, the quarterly report also disclosed the progress of the company's major investment projects. The Hengli Refining and Petrochemical 20 million-ton/year refinery integration project with 4.5 million tons of aromatics combined plant has been at the peak of equipment installation and construction. During the period, the plan for trial production in the fourth quarter of 2018 is progressing steadily. Hengli Chemical’s 1.5 million-ton/year ethylene project has been approved by the government. The design of the process package and the formation of the ground are basically completed. Detailed design is started and the follow-up begins. The long-cycle equipment procurement and personnel recruitment work. Other projects such as annual production of 1.35 million tons of multi-functional high-quality textile new materials for Hengke New Materials and Hengli Petrochemical's annual production of 2.5 million tons of PTA-4 projects are also steadily implemented.
In-depth development of the advantages of the entire industry chain system and continuous improvement of its core competitiveness
Hengli said that with the above-mentioned projects representing the industry's advanced production capacity and integrated and well-constructed projects being completed and put into operation, on the one hand, the listed company's business system will extend from the existing 'PTA-polyester' area to the upstream ones. In the glycol segment, the bottleneck of raw materials will be opened one by one, and transformed into a global market-oriented form of crude oil imports. The company’s raw material supply security will be greatly protected; on the other hand, Hengli’s shares will accelerate the establishment of “crude oil-aromatic hydrocarbons, ethylene”. PTA, Ethylene Glycol-Polyester-Public Silk, Industrial Silk, Slice, Film, Engineering Plastics' full-industry-chain operation mode, and efforts to promote the implementation of intelligent interconnection and product digital management innovation based on collaborative operation of the whole industry chain, strengthening High-end technological breakthroughs and key market breakthroughs, and actively meet the requirements of the era of high-quality development, these measures will provide the company with continuous integrated competitive advantage and stable overall profitability coverage support for the company's business development in the next phase. The vision for the development of a world-class, full-industry energy and chemical supplier continues to advance.
