Satellite Petrochemical (002648) semi-annual report comments: new capacity release performance profit increased 70 in the first half.

4%

Satellite Petrochemical (002648) semi-annual report comments: new capacity release performance profit increased 70 in the first half.

4%

The company released a semi-annual report, and the profit in the first half of the year increased by 70.

4%.

The company’s 1H19 revenue is up 18 per year.

4% to 51.

60,000 yuan, 2Q revenue 30.

500 million, an increase of 44 from 1Q.

9%; 1H19 net profit attributable to mothers rises 70 per year.

4% to 5.

5.7 billion, 2Q net profit to mother 3.

3.7 billion, up 53 from 1Q.

2%.

In the first half of 2019, the company’s annual output of 45 plug-in PDH second-phase units and an annual output of 15 polypropylene second-phase units have been successfully put into operation, bringing significant performance increases to the company.

From the perspective of product prices and spreads, the average price of 2Q’s main raw materials was on average the same as that of 1Q. The average prices of major products such as propylene, acrylic acid, and esters fell by 4-6% from 1Q, and the 2Q product price gap contracted.

New projects were actively promoted, and the company’s medium- and long-term performance growth was guaranteed.

The average price of new projects reserved by the company is being actively promoted. The third-phase superabsorbent resin three-phase plant with an annual output of 6 has entered the commissioning stage.Petrochemical 苏州夜网论坛 Co., Ltd.’s annual output of 135 tons of PE, 219 tons of EOE, and 26 tons of ACN combined plant projects is progressing in tandem, and the company’s medium- and long-term performance growth will be guaranteed.

Investment proposal: It is estimated that the company’s revenue for 2019-2021 will be 122 trillion, 149 trillion, 267 trillion, and the net profit attributable to the mother will be 13.

6.3 billion, 15.

50,000 yuan, 30.

77 trillion, corresponding to EPS 1.

28 yuan, 1.

41 yuan, 2.

89 yuan.

The company has been cultivating in the C3 industry for many years, and at the same time, it is actively deploying the C2 business and hydrogen energy field. We believe that the company has a breakthrough in growth space and maintains the “overweight” level.

Risk Warning: New capacity launch progress exceeds expectations, baseline downstream demand growth exceeds expectations, etc.