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Yizheng Chemical Fiber Will Benefit From Three Changes In Polyester Industry

2010/12/1 10:08:00 43

Yizheng Chemical Fiber Polyester Industry

After the financial crisis, some domestic and foreign enterprises have gradually withdrawn

Polyester industry,

In this way, the supply and demand gap of the industry has been reduced, and the profitability of the industry has been improved.

Since the beginning of this year, three major changes have taken place in the domestic polyester industry: first, the rapid expansion of upstream capacity in the first few years, and the full supply of raw materials at present; two, the growth of downstream demand is good, and the new demand is constantly emerging, making the demand of the industry more than expected; three, it is

Cotton price rise

The price of polyester products has soared, and cotton prices are expected to remain high in the future. The polyester industry is facing a turning point.

Recently, prices of polyester products such as chips, staple fibers and filament yarns increased by 70%-100% compared with the beginning of the year, of which the price of staple fiber exceeded 18000 yuan per ton.

The price of PX, PTA and MEG in the same period increased by about 10%-20%.

As the leader of polyester industry, Yizheng chemical fiber (01033.HK) is a modern chemical fiber and chemical fiber raw material producer.

The company is mainly engaged in the production and sale of polyester chips.

Polyester fiber

Production and production of polyester main raw material terephthalic acid (PTA).

The company is the seventh largest polyester producer in the world.

The company currently has 1 million 722 thousand tons of polyester polymerization capacity, 765 thousand tons of polyester fiber drawing capacity, 69 thousand tons of polyester filament elasticity and 959 thousand tons of PTA oxidation refining capacity.

At present, the company has 100 tons of aramid 1414 business and 300 tons of high-strength polyethylene project.

In the future, we will mainly invest in three new material projects, one is high-performance fiber aramid, which has passed the pilot test. In the future, the technical pformation will be completed as soon as possible, so as to prepare for the implementation of 1000 ton level projects.

The two is HDPE, which will invest 100 million yuan (RMB) in the next 2-3 years, reaching an annual capacity of about 1000 tons.

The three is the butanediol project, which needs investment of about 1 billion 500 million yuan, and will be put into operation in 2012, with an annual capacity of about 100 thousand tons.

Due to the rapid growth of downstream demand, the volume and price of new products are rising rapidly. In the future, the release of capacity will bring huge profits to the company.

The company's net profit in 2010 will reach 1 billion 615 million yuan. We expect that the profit holders of Yizheng chemical fiber 2010 to 2012 will account for 1 billion 640 million yuan, 3 billion 149 million yuan and 3 billion 626 million yuan respectively, and the basic earnings per share from 2010 to 2012 will be 0.41, 0.79 and 0.91 yuan respectively.

We first paid attention to the company and gave a "buy" rating, and set the target price of HK $5.59 by the PE method. The target price is equivalent to 12 times PE of the company in 2010, which is 56% higher than the current price.