Re-transformation "downstream" of private large-scale refining and chemical industry: from chemical fiber to refining and chemical to new energy and new materials

In recent years, large private refining and chemical companies, including leading companies such as Hengli Petrochemical and Dongfang Shenghong, have begun to shift from petroleum refining and light hydrocarbon cracking to downstream new energy and new materials

Looking back at the development history of large private refining and chemical enterprises, there is a very important node, which is August 8, 2014

Since then, many private enterprises from the chemical fiber industry have begun to transform into the upstream refining and chemical field, and the best of them have opened up the refining and chemical integrated industrial chain and achieved a leap in scale and profit

In addition, this round of transformation of downstream textile enterprises to upstream expansion is the general trend under the guidance of the policy at that time

Different from the last round of transformation with key time nodes and project nodes, today's private refining and chemical industry has quietly emerged a new wave of transformation

As one of the leading private refining and chemical enterprises, Shenghong Group has the largest single-process integrated refining and chemical project with an annual output of 16 million tons in China

In addition to the large private refining and chemical enterprises that are actively preparing for transformation, satellite petrochemical, the leading light hydrocarbon integration leader, has also begun to deploy new energy and new material integration projects

Hengli Group's refining and chemical integration project construction site

　　"The implementation of the 'double carbon' goal will accelerate the low-carbon development of China's energy structure, which will have a significant impact on the development mode of the energy and chemical industry, and promote the transformation of enterprises from traditional energy consumption to green new energy and high-end new materials

　　The transformation of large private refining and chemical enterprises to the downstream field of new energy and new materials has unique advantages

　　Ma Ming, vice president of Sinopec Beijing Chemical Research Institute, said that deep refining and chemical integration is the biggest advantage of private large refining and chemical transformation to downstream new energy and new materials

　　Secondly, thanks to industrial scale and technological advantages, private large refining and chemical enterprises have excellent performance in energy consumption and energy efficiency, which will make it easier for them to become energy efficiency leaders and green benchmarking enterprises in the industry

　　Finally, large refining and chemical enterprises also have considerable advantages in terms of talents and funds

　　"Danger" and "opportunity" coexist in the development of new energy and new materials

　　From the perspective of the capital market, with the in-depth transformation of the product structure to the downstream high value-added direction, the valuation of large private refining and chemical enterprises will also be significantly improved

　　According to the research report of Sinolink Securities, the main business of the private large refining and chemical sector is still concentrated in the industrial chain of crude oil-paraxylene-purified terephthalic acid-chemical fiber filament and bulk chemicals, and its static price-earnings ratio is basically 6~13 times
.
As private large refining and chemical enterprises continue to deploy deep processing projects in the downstream industrial chain, terminal products are expected to gradually shift from bulk chemicals to new materials for semiconductors, photovoltaics, new energy and other industries
.
The average price-earnings ratio of new energy and photovoltaic industry chain-related industries and companies exceeds 30 times, and the average price-earnings ratio of optical films and release films exceeds 20 times.
The lithium battery separator (wet process) industry benefits from the continuous high growth of the downstream industry of lithium batteries.
The price-earnings ratio is maintained at 90 times, and the price-earnings ratio multiples are significantly higher than the price-earnings ratio multiples of the private refining and chemical sector
.

　　From the perspective of market demand, the demand for high-end chemical new materials is continuing to grow
.
According to an industry report released by Ping An Research, new chemical materials will usher in investment opportunities in 2022, and private large-scale refining and chemical companies will continue to maintain their leading position in the industry
.
The report pointed out that under the background of "double carbon", new materials will become the main driving force for the growth of private refining and chemical enterprises
.
It is expected that ethane cracking will maintain high profitability for a long time due to its cost advantage, which is conducive to the layout of the industry leader in the downstream hydrogen energy and new chemical materials business
.
In terms of new materials, vigorously developing new chemical materials and high-end fine chemicals will be the two major tasks during the "14th Five-Year Plan" period.
At present, this field is strongly supported by policies and capital, and is expected to accelerate its development
.

　　In addition, the recently enacted Regional Comprehensive Economic Partnership (RCEP) and the potential incremental markets of the “Belt and Road Initiative” will also drive the development of high-end new material industries
.
It can be said that private large refining and chemical enterprises are facing a vast blue ocean of new energy and new materials
.

　　The increase in demand volume and the reduction of trade barriers have not only brought huge imagination space, but also brought practical competition upgrades
.
The person in charge of Hengli said that in the process of transformation, large private refining and chemical enterprises are faced with the structural imbalance of serious product homogeneity and shortage of high-end products
.
"Although these are challenges, they are also opportunities.
Private refining and chemical enterprises can make efforts in the differentiation, high-end, refinement, and high added value of downstream products through breakthroughs in new technologies and processes, and seek new development.
Highlands
.
" The person in charge responded positively to future competition
.

　　Song Yanping also paid attention to the issue of competition
.
"Foreign investment is entering China in an all-round way, and new materials are being developed.
The competition in the industry is becoming more and more fierce
.
" Song Yanping said that after foreign-funded enterprises move their production bases into China, they can eliminate the impact of high tariffs, avoid foreign exchange risks, and save freight costs.
, improve the competitiveness of foreign-funded enterprises' products
.
At the same time, foreign companies can use their R&D capabilities and technological advantages to carry out more targeted R&D and production in line with the needs of the downstream market
.
With the official entry into force of the RCEP agreement and China's active consideration of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), this competition from foreign companies will become more intense, and domestic companies will be under greater pressure
.

　　"New energy and new materials are one of the strategic highlands for the world's chemical powers and multinational companies to compete
.
China's new energy and new materials market is huge, but a large number of cutting-edge technologies in related areas need to be broken through.
Adjust industrial demand, rapid-response R&D and production capacity
.
" The relevant person in charge of Shenghong Group said that the importance of current technology in the game of great powers is becoming more and more prominent, and the long-term blockade and suppression of high-tech by Western countries will not change.
The introduction of high-end materials technology is also relatively difficult
.
This will restrict the further development of private large refining and chemical enterprises in the field of new energy and new materials
.

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　　On September 14, 2021, the Hengli (Yangtze River Delta) International New Materials Industry Base Project started construction in Wujiang District, Suzhou City
.
The total investment of the project is 20 billion yuan.
It mainly builds high-end functional polyester film and engineering plastic projects with an annual output of 1 million tons, as well as R&D, warehousing, and marketing centers.
After full operation, it can achieve sales revenue of 50 billion yuan
.

　　On December 21, 2021, Zhejiang Rongsheng Holding Group and Zhoushan Municipal Government signed the Jintang New Material Park project
.
According to the cooperation agreement, the total investment of the project is about 50 billion yuan.
It will use the refining capacity of the Zhoushan Green Petrochemical Base with an annual output of 40 million tons, and mainly invest in the construction of 7 chemical industry chain projects and supporting projects.
The total product volume is expected to reach 4.
5 million tons.

.

　　On December 28, 2021, Fujian Henghai New Materials Co.
, Ltd.
, jointly funded by Tongkun Group Co.
, Ltd.
and Fujian Fuhua Gulei Petrochemical Co.
, Ltd.
, held an inauguration ceremony
.
The company plans to invest in Gulei with an annual output of 2.
4 million tons of new intelligent functional fibers and 200,000 tons of polyester low-elastic yarn differential fibers, with a total investment of over 10 billion yuan
.

　　On January 26, 2022, Hengli Petrochemical announced that its subsidiary Hengli Petrochemical (Dalian) New Material Technology Co.
, Ltd.
plans to invest about 24 billion yuan to build a project with an annual output of 1.
6 million tons of high-performance resins and new materials, with an annual output of 2.
6 million Tons of high-performance polyester project, and further expansion to the downstream of new fine chemical materials
.

　　Recently, Dongfang Shenghong's acquisition of 100% equity of Sierbang has also attracted great attention from the market
.
This acquisition marks Dongfang Shenghong's formal entry into the field of new chemical materials
.
Sierbang is the largest manufacturer of photovoltaic grade EVA resin in China
.
As an important platform to carry the strategic transformation of Shenghong Group, Sierbang is promoting the layout of new energy and new materials industry
.
After the completion of this transaction, Dongfang Shenghong officially entered the field of new chemical materials, forming an industrial matrix of "refining + polyester + new materials"
.