Boom degree differentiation, the rise of new energy

1. The prosperity of chemical products has increased, and the profitability of enterprises has increased significantly

1.1 The prosperity of the chemical sector is maintained, and sub-industries are differentiated

The growth rate of the chemical industry has declined but is still at a high level, and the sub-industries are differentiated. As of September 2, chemical (SW) and Shanghai and Shenzhen 300 fell by -10.14% and -18.18% respectively from the beginning of the year, and chemical (SW) rose by 8.05% relative to Shanghai and Shenzhen 300. 10/33 tertiary sub-industries (SW) outperformed chemical (SW), and the sub-industries with a larger increase were non-metallic materials, carbon black, other chemical fibers, inorganic salts, phosphate fertilizers and phosphorus chemicals.

(1) Performance

The prosperity of the chemical industry has been maintained since 2022. According to the classification of Shenwan Chemical Industry 2021, there are 377 listed companies in basic chemical industry, 47 listed companies in petroleum and petrochemical industry, and the total operating income of the chemical industry in 2021 reached 8,642.288 billion yuan, an increase of 33.18%. The total operating income in 2022H1 reached 5,241.806 billion yuan, up 31.63% year-on-year. In 2021, the total net profit of listed companies in the industry was 506.446 billion yuan, an increase of 149.27%, and the net profit of 2022H1 was 364.805 billion yuan, an increase of 35.07%. Affected by global local turbulence, upstream petrochemical energy prices are still high and volatile. Sustainable benefit from the high economy.

In addition to oilfield services, the six major petroleum and petrochemical sub-industries have increased their operating income and performance in 2021. The operating income of the six petrochemical sub-industries in 2021 all increased by different margins, among which the operating income of oil and gas exploitation, oil and petrochemical trade, refining and chemical sub-industries increased by 57.07%, 54.57% and 34.41%, respectively, and the net profit of the parent industry increased by more than 100% except oilfield services, mainly due to the rising prices of industrial products. The market demand is strong, and the production and sales volume have achieved substantial growth.

2022H1 Potash fertilizer, non-metallic materials, inorganic salts, organosilicon, other chemical fibers and other industries grew by more than 50%. In the 33 sub-industries of basic chemical industry, the operating income of all sub-industries in 2021 showed different levels of growth, of which the operating income of other chemical raw materials, polyurethane, spandex and other industries grew by more than 90%. Since the beginning of this year, affected by the Russian-Ukrainian war, the export of traditional fertilizer and food powers Russia and Ukraine has been restricted, the global supply and demand of fertilizer is tight, and the profit level of domestic fertilizer enterprises has been greatly improved.

In the first half of 2022, the sub-industry differentiation was obvious, and the net profit growth rate of potash fertilizer, fluorine chemical industry, phosphate fertilizer and phosphorus chemical industry, inorganic salt, and other chemical fibers was more than 100%. In 2021, 25 industries in the basic chemical industry achieved positive growth, excluding viscoses, textile chemicals, pesticides, synthetic resins, paint inks, other rubber products, adhesives and tapes, modified plastics and other industries, and most of the other chemical sub-industries achieved growth. Among them, the net profit growth rate of soda ash, phosphate fertilizer and phosphorus chemical, other plastic products, compound fertilizer, nylon, polyester industry is 14457.68%, 680.40%, 547.90%, 424.64%, 365.02%, 357.93%. 2022H1 chemical sub-industry differentiation is more obvious, the growth rate of most industries has fallen, mainly the contradiction between supply and demand of chemicals has eased, the overall operating rate and inventory of the industry have increased, product prices have returned rationally, and the growth rate of potassium fertilizer, fluorine chemical industry, phosphate fertilizer and phosphating, inorganic salts, other chemical fibers and other industries has exceeded 100%.

(2) Profitability

The profitability of the industry in the first half of 2022 is maintained. In 2021, although the domestic macro economy has been affected by the novel coronavirus epidemic, it has maintained a steady and progressive development trend on the whole. Affected by the supply shortage and the recovery of demand in the chemical industry, the prices of chemical products have generally risen sharply, and the profit level of the industry has generally improved. The gross profit margin and net profit margin of the chemical sector in 2021 were 22.81% and 11.31%, respectively, a sharp increase of 3.27 percentage points and 4.79 percentage points year-on-year, and the ROE was 15.80%, an increase of 7.32 percentage points year-on-year. 2022H1 Gross profit margin and net profit margin continued to be 22.14% and 12.14% respectively.