新闻详情
Hualu-Hengsheng Chemical:Moving into fine chemicals; adipic...
来自 : 腾讯网
发布时间：2021-03-25
News。
HualuHengsheng(HLHS)announcedonJuly9,2010thatitsBoardofDirectorsapprovedanew160,000-tonp.a.adipicacid(AA)projectforatotalinvestmentofRmb1.6bn,whichwouldbefinancedthroughinternalresources,bankloansanddebt.AAisaspecialtychemicalwhichisanimportantprecursorofnylon(18%ofChina’sconsumption),andcomplementsHLHS’existingkeyproductDMFasarawmaterialforproducingpolyurethaneandplastics(78%ofChina’sconsumption).
Accordingtotheannouncement,HLHSestimatestheprojectwouldgenerateannualrevenueofRmb2.2bnaftercompletionbyend2012E,implyinganASPofaboutRmb16,100/mt(includingtax),somewhatinlinewiththeaveragepriceforthelast5years,but15%belowcurrentspotAAprice.
Analysis。
Year-to-dateAApriceshaverisentonear2006peaklevelsonthebackof:(1)a5-yearanti-dumpingruletaxing5%-35.4%onAAimportsfromUS,EUandKorea,effectivefromNov2009;and(2)rawmaterialdisruptionsandtransportationbottlenecksatmajorproducers.Asaresult,AA-overbenzene(keyrawmaterial)spreadisapproachingnearpeaklevels.Webelievesuchsuper-normalprofitsareunsustainableasaggressiveAAcapacityexpansionsinChina(+33%CAGRfor2010E-2012E)kickinsimultaneouslyin2012E,andourconstructiveviewonoilpricessuggestupsideriskstorawmaterialcosts.Whilenotlucrative,weexpecttheprojecttobeearningsaccretive.WeestimatetheprojecttogeneratenormalizedgrossprofitofRmb5,500/mt(current:aboutRmb9,500/mt)andcouldaddaboutRmb0.30toHLHS’sEPSassuming100%utilization.
Implications。
TheprojectispendingshareholdersapprovalonJuly27,2010.Wekeepourestimates,Neutralratingandpricetargetunchanged.Keyupsideriskisbetter-than-expectedchemicalcyclerecovery.Keydownsiderisks:(1)adverseweatherconditions;and(2)sharpcoalpricehike.
HualuHengsheng(HLHS)announcedonJuly9,2010thatitsBoardofDirectorsapprovedanew160,000-tonp.a.adipicacid(AA)projectforatotalinvestmentofRmb1.6bn,whichwouldbefinancedthroughinternalresources,bankloansanddebt.AAisaspecialtychemicalwhichisanimportantprecursorofnylon(18%ofChina’sconsumption),andcomplementsHLHS’existingkeyproductDMFasarawmaterialforproducingpolyurethaneandplastics(78%ofChina’sconsumption).
Accordingtotheannouncement,HLHSestimatestheprojectwouldgenerateannualrevenueofRmb2.2bnaftercompletionbyend2012E,implyinganASPofaboutRmb16,100/mt(includingtax),somewhatinlinewiththeaveragepriceforthelast5years,but15%belowcurrentspotAAprice.
Analysis。
Year-to-dateAApriceshaverisentonear2006peaklevelsonthebackof:(1)a5-yearanti-dumpingruletaxing5%-35.4%onAAimportsfromUS,EUandKorea,effectivefromNov2009;and(2)rawmaterialdisruptionsandtransportationbottlenecksatmajorproducers.Asaresult,AA-overbenzene(keyrawmaterial)spreadisapproachingnearpeaklevels.Webelievesuchsuper-normalprofitsareunsustainableasaggressiveAAcapacityexpansionsinChina(+33%CAGRfor2010E-2012E)kickinsimultaneouslyin2012E,andourconstructiveviewonoilpricessuggestupsideriskstorawmaterialcosts.Whilenotlucrative,weexpecttheprojecttobeearningsaccretive.WeestimatetheprojecttogeneratenormalizedgrossprofitofRmb5,500/mt(current:aboutRmb9,500/mt)andcouldaddaboutRmb0.30toHLHS’sEPSassuming100%utilization.
Implications。
TheprojectispendingshareholdersapprovalonJuly27,2010.Wekeepourestimates,Neutralratingandpricetargetunchanged.Keyupsideriskisbetter-than-expectedchemicalcyclerecovery.Keydownsiderisks:(1)adverseweatherconditions;and(2)sharpcoalpricehike.
本文链接： http://totalspecialtychem.immuno-online.com/view-764379.html
发布于 ： 2021-03-25
阅读（0）
最新动态
2021-03-25
2021-03-25
2021-03-25
2021-03-25
2021-03-24
2021-03-24
2021-03-25
2021-03-25
2021-03-25
2021-03-24
2021-03-25
2021-03-25
品牌分类
其他
联络我们
