Kang Yin, a reporter from the Securities Times
Hengyi Petrochemical (000703) released its 2023 annual report on the evening of April 19th. During the reporting period, Hengyi Petrochemical (000703) achieved a total operating income of 1361.Retroarcade48 billion yuan, with a net profit of 435 million yuan, turning losses into profits over the same period last year; the net cash flow generated by operating activities was 4.532 billion yuan, an increase of 67.50% over the same period last year. The company's annual profit distribution plan for 2023 is to distribute 1 yuan (including tax) to all shareholders for every 10 shares; at the same time, the company explains the mid-term cash dividend plan for 2024.
Hengyi petrochemical production capacity ranks in the forefront of the industry, the scale advantage is obvious. The company has 8 million tons of refining and chemical design capacity, 21.5 million tons of PTA holding capacity, 11.115 million tons of polyester production capacity and 400000 tons of caprolactam production capacity.
In terms of the refining and chemical sector, the demand for oil products in Southeast Asia is expected to maintain steady growth. According to the latest forecast released by the International Monetary Fund in January 2024, the GDP growth rate of ASEAN countries will remain at a high level in 2024, of which Indonesia expects GDP growth of 5.0% and the Philippines expects GDP growth of 6.0%, which is still much higher than the global level. The expected good situation of the economy may further lead to an increase in demand for refining and chemical products. Compared with the oversupply of domestic oil products, the market gap of oil products in Southeast Asia is large, and the demand for oil products is increasing, which is the largest net import market of oil products in the world.
On the supply side, according to Platts (Platts Energy Consulting) data, more than 30 million tons of refining energy in Southeast Asia and Australia withdrew from the market from 2020 to 2023, superimposed stricter global environmental policies, lack of willingness of refineries to expand production, capital expenditure plans tend to be cautious, and future refinery capacity growth is limited. According to the forecast of IEA (International Energy Agency), the energy refining in Southeast Asia will remain the same as a whole until 2028.
Polyester plate, in the textile and clothing industry high demeanor, polyester fiber demand more than expected release, production high load operation, output growth reached a record high in nearly 13 years. According to CCF data, the apparent demand for polyester filament in 2023 was 36.68 million tons, an increase of 22.8 percent over the same period last year, with a significant increase in demand; the net new production capacity for the year was 3.85 million tons, and the annual production capacity reached 51.68 million tons, an increase of 8.0 percent over the same period last year; and the annual output totaled 40.6 million tons, an increase of 22.7 percent over the same period last year.
The demand for polyester filament increases strongly in 2023. Taking this opportunity, Hengyi Petrochemical continues to strengthen the technical transformation of polyester plate. During the reporting period, Hengyi petrochemical polyester products were booming in production and marketing, various indicators were stable and improved, and profitability was significantly improved.
Hengyi Petrochemical profit distribution plan shows that the company will pay cash dividends of 1.00 yuan (including tax) to all shareholders for every 10 shares, no bonus shares, no provident fund to increase equity. In total, a cash dividend of 339 million yuan (including tax) will be distributed. Together with the proposed dividend amount of this dividend plan, it is estimated that the dividend amount will reach about 4.6 billion yuan since listing.
Like cash dividends, share buybacks are also an important measure to enhance returns to shareholders. In 2023, Hengyi Petrochemical was implemented.RetroarcadeThe third phase and the fourth phase of the share repurchase plan, the company's fourth phase of the share repurchase plan cumulative repurchase amount of 2.675 billion yuan.
