Rongsheng Petrochemical (002493): Foreign exchange loss affects the performance of the first phase of Zhejiang Petrochemical

Rongsheng Petrochemical (002493): Foreign exchange loss affects the performance of the first phase of Zhejiang Petrochemical
The company announced its 2018 annual report.In 2018, the company achieved operating income of 914.25 billion (+26.91%), net of non-attributed 北京夜网 net profit14.7.3 billion (+0.25%), basically unchanged for one year. Affected by foreign exchange gains and losses, the three fees increased in 2018.The company’s three fees in 2018 were 33.7.1 billion, ranking 13 in 2017.7.1 billion.Including selling expenses 7.40 billion (+45.49%), management + R & D expenses12.9.6 billion (+12.19%), financial expenses 13.35 billion (+204.39%), the largest increase in financial expenses is mainly due to exchange losses estimated to increase by 7.2.1 billion. CICC Petrochemical’s 2018H2 results exceeded expectations.CICC Petrochemical’s 2018 net profit was 8.97 billion (-11.85%), of which 7 in the first half.10 billion, 1 in the second half of the year.9.7 billion, second-half performance was lower than expected.As CICC involves the import of fuel oil / naphtha, we believe that exchange losses are also one of the reasons for CICC’s gradual expectations. The PTA is booming in 2018 and is expected to remain in 2019.In 2018, the PTA maintained a close balance, with an average processing difference of 908 yuan / ton, an increase of over 45.07%.The company’s three PTA subsidiaries, Yisheng Dahua, Zhejiang Yisheng and Hainan Yisheng, have clearly recovered their profits, achieving net profit4.5.9 billion (+386.86%), 6.4.9 billion (+89.41%), 4.5.7 billion (+757.34%).At present, polyester, PTA profits are good, weaving demand is normal, and PTA did not replenish production capacity before the third quarter of 2019, which is expected to maintain a high degree of prosperity. The first phase of Zhejiang Petrochemical has steadily advanced.In 2018, the company completed 6 billion non-public issuances, obtained 60.7 billion loans led by CDB, and 4 billion green bonds have also been approved by the CSRC. The first phase of Zhejiang Petrochemical has been resolved and construction progress has accelerated.As of the end of 杭州夜生活网 2018, the progress of the first phase of Zhejiang Petrochemical was 55%, of which the additional expenditure of 26 billion US dollars in 2018H1, the construction and installation of the project was basically completed, and gradually turned to the trial production preparation and pre-sale stage.We forecast the company’s net profit attributable to mothers 31/2019/20/21.61/52.84/63.370,000 yuan, EPS 0.50/0.84/1.01 yuan, corresponding to the current price of PE 26.5/15.8/13.2x, maintain “Buy” rating. Risk reminder: sharp changes in oil prices, decline in polyester demand