Sinochem (601117): The main business of chemical industry continues to regenerate and diversify its business

Sinochem (601117): The main business of chemical industry continues to regenerate and diversify its business

Investment Highlights: The company’s 2018 net profit growth rate is 24.

1%, basically in line with our expectations (20%).

In 2018, the company achieved total operating revenue of 81.4 billion yuan, an increase of 39 year-on-year.

1%, achieving net profit attributable to mother 19.

30,000 yuan, an annual increase of 24.


Among them, Q1 / Q2 / Q3 / Q4 achieved 重庆耍耍网 revenues of 14.9 billion / 19.1 billion / 19.6 billion / 27.8 billion in a single quarter, an increase of 41.

9% / 32.

3% / 46.

4% / 37.

6%, respectively, to achieve a net profit of 4.

10 billion / 6.

8.4 billion / 5.

4.1 billion / 3.

0.6 billion, an increase of 29 each year.

0% / 27.

4% / 21.

7% / 15.


The development pattern of diversified business has been gradually established, and overseas market development has achieved remarkable results.

The company’s 18-year project construction business income was 657 million, an increase of 34 year-on-year.

6%, the gross margin decreases by a constant 3.

82 up to 10.

18%, we believe that it has suffered from the adverse effects of the macroeconomic environment and foreign political factors. In 18 years, the gross profit margin of some newly started projects has decreased, and the cost has improved, replacing the proportion of professional engineering projects attributed to high gross profit.Design income 25.

40,000 yuan, an increase of 0 in ten years.

78%, gross margin increased short-term4.

8 up to 27.

2%; industrial and other income mainly come from the sales of Fujian Tianchen Yaolong Caprolactam project, Indonesia’s Palembang Power Station, some processing and manufacturing and real estate sales. In 18 years, it realized revenue of US $ 12.7 billion, an increase of 85.

4%, revenue share increased by 3.

92 up to 15.

7%, which is mainly because the real estate projects of some subsidiaries started to be sold in 18 years, which led to an increase in the revenue of the sector and a decrease in gross profit margin.

70 single to 15.

7%, from the perspective of important subsidiaries that carry out other businesses, Fujian Tianchen Yaolong’s revenue is 45.

1 billion, the previous decade 2.

22%, net profit of equity 2.

9 billion, basically the same as last year; Indonesia’s power plant revenue 5.

47 billion, the previous decade1.

79%, net profit1.02 ppm, a 10-year increase of 3.

09%; Sinochem Engineering Finance Company’s revenue 5.

4.7 billion, an annual increase of 55.

4%, net equity 1

580,000 yuan, an increase of 63 in ten years.


By region, the company’s domestic business income was 50.7 billion, an annual increase of 24.

2%, gross margin decreased by 2.

39 up to 12.

9%; overseas business income was 302 trillion, an annual increase of 74.

0%, the proportion increased by 7.

66 averages to 37.

3%, mainly from Indonesia, Saudi Arabia, Turkey, Brunei, Malaysia and other national projects, the gross profit margin decreased by 5.

68 single to 9.


The company’s comprehensive gross profit margin decreased by 3.

The total of 68, the better control of the expense ratio during the period, the amount of reduction in asset impairment value, the net interest margin under the comprehensive impact of 0.

17 averages.

In 2018, the company’s comprehensive gross profit margin was 11.

6%, the ten-year average of 3.

68 units.

Add back the R & D expenses, and the expense ratio will decrease by 2 every year.

02 single to 6.

54%, of which the sales expense ratio was basically unchanged from the same period last year, about 0.

46%; the overhead cost rate decreases by 1 each year.

14 up to 2.

83%, mainly due to the company’s commitment to refined management to achieve results, employee compensation, social insurance and education budget and other project expenditures decreased by 66.03 million yuan, research and development expenses3.

17%, an increase of 0 every year.

09 shares per share; benefiting from the depreciation of the RMB, realized exchange gains3.

08 billion, a loss of about 3 in the same period last year.

39 trillion, leading to a reduction in the financial expense ratio ratio of 0.

92 averages to 0.


The company continued to expand the scale in 18 years to accrue asset impairment losses12.

6.4 billion yuan, of which Sichuan Shengda PTA project made provision for impairment of fixed assets3.

55 ppm, provision for impairment of intangible assets is 0.

4.1 billion, total 3.

96 ppm, the project has accumulated impairment.

US $ 900 million, with current total assets of US $ 2.6 billion. The existing overall assets are leased to Sichuan Energy Investment Corporation for operation; bad debt losses are accrued6.

7.5 billion, an increase of 0 over the previous year.1.8 billion; provision for impairment of inventory1.

3.1 billion, a decrease of 3 previously.

4.1 billion, mainly due to the prepayment for the division of the scale of the impairment of the Donghua Science and Technology Potash and Potash Fertilizer Project. Inventory commodities and completed and unsettled accounts were formed. They were transferred to prepayments of 67.5 million yuan and inventory commodities1.

Due to 46 trillion, the proportion of total asset impairment losses in operating income decreased by one.

11 up to 1.

55%, the overall impact of the company’s net interest rate fell by 0.

17 up to 2.


The increase in collection and payment made net cash flow from operating activities inflows repeatedly.


The company’s net cash flow from operating activities in 2018 was 49 trillion, with an annual inflow of 20 more.

2 trillion, mainly due to the receipt of collection and payment on behalf of the increase of 18 over the same period last year.


The company’s 18-year cash ratio was 84.

3%, a decrease of 3 from the same period last year.

6 percentage points, bills receivable and accounts receivable increased by 20 megabytes, and completed unsettled conversions in inventory decreased by 12.

5 trillion; advance receipts increased by 10 in ten years.

8 billion.

Payout ratio is 78.

0%, a decrease of 4 per year.

9 per share, advance payment increased by 3 every year.

0.8 billion, bills payable and accounts payable increase by 36 each year.

4 billion.

The company’s new long-term single-term continuous high growth has verified the improvement of the investment climate of chemical industry and the rapid development of diversified businesses.

The company’s newly signed contracts for the whole year of 145 billion yuan increased by 53% year-on-year.

In terms of order types, the number of newly signed chemical engineering contracts reached 103.1 billion in 18 years, an increase of 56% and accounting for 71% of the newly signed contracts. Among them, the number of newly signed chemical engineering contracts was 51.9 billion, an increase of 58%, which represented a 1.

15 up to 35.

8%; coal chemical industry newly signed 25.2 billion, a year-on-year increase of 181%, accounting for 17.

4%, an increase of 7.

96 units; newly signed 25.9 billion petrochemicals, an annual increase of 7.

76%, the proportion decreased by 7.

43 up to 17.


Infrastructure (including the original building and power) was newly signed with 28.1 billion yuan, a year-on-year increase of 122%, and its proportion increased by 6.

05 good to 19.


Newly signed 5.2 billion yuan in environmental governance, an increase of 9 in ten years.

52%, accounting for 3.
58%, a decrease of 1.

4 units.
In terms of regions, new territories were signed for 94.6 billion in 18 years, an increase of 54% over the previous year, and a 66% growth rate for 17 years. We believe that domestic orders are usually executed faster and can be reflected more quickly on the income side;40 million, an annual increase of 50%, the new signing of 22.9 billion in the first quarter of 19, an increase of more than 167%.

南京夜网 Maintain the profit forecast, supplement the profit forecast for 2021, and maintain the “overweight” rating: the company’s 19-21 net profit is expected to be 26.

3.1 billion / 32.

89 billion / 41.

1.1 billion, the growth rate is 36% / 25% / 25%, the corresponding PE is 13X / 10X / 8 respectively.

2X, maintaining the “overweight” rating.

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