On May 13, “Forbes”, one of the world’s most influential and authoritative business magazines, released the list of the top 2000 listed companies in 2021.
A total of 14 Chinese petroleum and chemical companies are on the list, namely: PetroChina, Sinopec, CNOOC, Hengli, COSCO Shipping Holdings, Formosa Petrochemical , Wanhua Chemical, ENN Co., Ltd., Rongsheng Development, China National Chemical, Rongsheng Petrochemical, Hengyi Petrochemical, China Petroleum Engineering Construction, Baofeng Energy.
According to public information It shows that the Forbes Global 2000 and the Fortune Global 500 are regarded as the two most authoritative lists of global companies by the global business community, and both are the most watched business enterprise rankings. The difference between Forbes and the Fortune Global 500 is that they use “operating income” as the main ranking indicator. Among them, “Forbes” magazine selects the “Top 2000 Global Listed Companies” every year, and the ranking is based on the operating income, profits, assets and the latest market value comprehensive score of the most recent full-year financial report.
Full process coverage
The market value of the four leading private refining and chemical companies reaches a new high
In 2015, the National Development and Reform Commission proposed a plan to develop seven major petrochemical industry bases, aiming to enhance the competitiveness of the domestic refining and chemical industry. In 2017, Zhejiang Petrochemical, Hengli Petrochemical and Sheng A number of large-scale private refining and chemical projects such as Hong Kong Refining and Chemical Co., Ltd. were approved, and private enterprises entered the stage of the domestic oil refining industry as the main force. The original intention of the state to liberalize refining and chemical projects was to activate the vitality of state-owned refining and chemical enterprises through private enterprises’ pursuit of profitability, trial of new technologies, and emphasis on talents. As large-scale private refining and chemical projects were put into operation at the end of 2019, they have indeed achieved their historical mission while releasing profits to create value for investors. Refining and chemical integration projects have begun to be launched one after another. Among the new refining capacity put into operation before 2025, 77 million tons will come from state-owned enterprises or joint venture projects involving state-owned enterprises.
Oil prices plummeted historically in March 2020. Most refining and chemical units experienced significant inventory and price losses. Traditional refining The revenue of chemical giants Sinopec and PetroChina dropped sharply, with a total loss of more than 52 billion yuan in the first half of the year. The first half of 2020 was the historical bottom of the refining and chemical industry. The industry was generally suffering losses. However, the market value of the four private enterprises represented by Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, and Tongkun Petrochemical reached a new high. The profits of the leading private refining companies (Rongsheng Petrochemical, Hengli Petrochemical, Hengyi Petrochemical and Tongkun Petrochemical) can still grow by 50%, and their profitability far exceeds the industry average.
The main products of the Four Refining Tigers from top to bottom are: crude oil-PX-PTA-PET-polyester filament. In the early years, these four refining companies Each plant has its own strengths in product production capacity at different stages of the refining process. In recent years, the Four Little Dragons have all moved towards covering the entire process.
Reviewing the development path of Rongsheng Petrochemical
Private refining companies have great ambitions
Back in mid-2017, taking Rongsheng Petrochemical as an example, Rongsheng Petrochemical announced a financing amount of up to The fixed increase plan of 6 billion yuan was a huge amount in terms of the secondary market at that time, and the fund-raising investment project was the Zhejiang Petrochemical Phase I project worth 90 billion yuan, and by then Rongsheng The market value of petrochemicals is only 60-70 billion yuan. Similar things happened to several other private refining and chemical companies during the same period. Private refining companies have great ambitions.
Smooth financing has laid a solid capital foundation for the development of private refining and chemical companies in the next few years. You must know that shortly after the release of the plan, the Chinese stock market experienced After a year of continuous unilateral decline, many listed companies’ additional issuance plans were aborted or postponed in 2018. The companies that were able to successfully issue additional financing at that time were excellent and lucky.
In the planning of Zhejiang Petrochemical Phase I and Phase II announced by Rongsheng Petrochemical in its 2017 additional issuance plan, the project includes a large amount of PX production capacity. Taking the current period as an example, 4 million tons of PX production capacity will be released upon completion. What is the concept? At that time, the national PX production capacity was 13.85 million tons. The completion of the first phase of Zhejiang Petrochemical can directly increase my country’s PX production capacity by 29%. The same capital expenditure and planning also occurred with Hengli Petrochemical, which also indicates that my country’s PX is fully self-sufficient. The era of self-sufficiency is coming. my country is a major consumer of PX. In 2017, more than 50% of PX still relied on imports. Private enterprises, mainly the four refining tigers, have kicked off the rapid advancement of domestic substitution of PX.
Back to the present, my country’s PX production capacity is basically self-sufficient, and there is a risk of overcapacity in the future. The private four little dragons basically cover the refining and chemical industries. The main process, so it can resist the risks of oil price fluctuations and periodic overcapacity in individual links.�� is relatively strong. At this point, private refining and chemical companies have gradually formed higher cost control barriers from the perspective of production operations. And based on the huge capital expenditure in the early stage, the company has also accumulated strong capital barriers.
In the end, Rongsheng Petrochemical’s stock price has been rising driven by the year-on-year growth in revenue and net profit, and the second phase of Zhejiang Petrochemical under construction is the company’s future The medium-term driver of performance growth has provided investors with better expected support, and the company’s market value has reached a period of over 310 billion yuan.
In the first half of 2020, the entire industry chain of the refining and chemical industry suffered losses, and the industry prosperity was at its worst in history. Old and backward production capacity suffered serious losses and was gradually cleared. Private large-scale refining and chemical companies are growing against the trend. Currently, international oil prices have rebounded from the bottom, and the price difference between key chemicals in the polyester industry chain and crude oil has stabilized and rebounded. The industry has passed the bottom of the boom and is in the initial stage of procyclical upward growth. With supply and demand leading the way, the tight spring is about to be released, and industry performance is expected to continue to rise.
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