The two giant oil refinery loss of profit under the shadow of

China’s first quarter decrease of 23.924 billion yuan perfecting commerce, petrochemical commerce since 2001, the first down turn in earnings

The chemical development is a greater fraction of the store market in China, China Petroleum (601857) (601857.sh) and Sinopec (600028) (600028.sh) is a very large heavyweight. First quarter of this year, the chemical development in the petrochemical and chemical development supported on two sub-sectors due to the carrying on get higher in global oil costs produced by the consequence of slower growth. China Petroleum and Chemical Industry Association’s written knowledge present that China’s oil enhancing development in the first quarter forfeit of 23.924 billion yuan, the petrochemical development since 2001, the first descent in profits. At the matching time, crude oil costs in spite of the endorsement of chemical yield supported on charge, but still came but the attainment of down-cycle. Rising charges of crude oil is the “culprit”

The chemical commerce is highly cyclical, in the past couple of years, China’s fast financial development, fast development rate of repaired buying into, so the expansion of the chemical commerce and the development rate of earnings is very gratifying. However, ecological defence, as well as putting force on raw components increased step-by-step, simultaneously with the international influence of China’s macro-economic slowdown. Thus, the expansion conveyed about by expanded expending, the boost in financing charges, merchandise whole margin down turn and slowdown in sales and other components may lead to expansion of the chemical commerce begun to go in a cyclical down high ground trend.

Orient Securities oil and chemical commerce, said Wang Jing, head analyst in the long run, the petrochemical commerce into a recession will not be so soon. Because, regardless of high oil charges, but the smaller comes to of the commerce demand for oil contrasted wang. “China is the world’s third-largest oil trading homeland, and apprehend up with Japan’s tendency of second place. The extending increase in worldwide crude oil charges, the charges for imported crude oil expanded, oil perfecting enterprise deficiency, producing in industry-wide earnings decline. ”

GF Securities chemical commerce investigator Wei-Dong Li said that the perfecting commerce a gigantic decrease, but the farming chemical and inorganic chemical in the soda ash commerce is thriving. This year, in worldwide merchandise charges of raw components charges and charges of farming goods and other components, farming merchandise charges extend to rise. In supplement, due to the smaller comes to of the demand development rate much quicker than productivity, producing in soda ash prices.

Sinopec came arduous shrinking yield

The chemical industry’s leading companies are the two heavyweight China Petroleum and Sinopec. “From these two levels of the company’s business, its upstream and downstream industry chain is fairly complete, but the emphasis on the upper reaches of the China National Petroleum oil and gas exploitation, and the emphasis on the lower reaches of China’s petrochemical refining industry. Therefore, the difference from a business point of view China’s Sinopec by high international oil prices, as well as the domestic refined oil price controls a greater impact. ” Jing said.

As a outcome of the proceeded worsening of the present inflationary stresses, China’s perfected oil charges and worldwide charges of the occurrence of inversion will be continued. Sinopec quarterly released this year displayed that the bigger the influenced its presentation, its rudimentary profits per share 0.077 yuan, snare assets yield 2.13 per hundred, 332 billion yuan of enterprise revenue. Judging from the snare earnings, 6.7 billion the first quarter of 65.78 per hundred year-on-year. And in detail as high as 7.4 billion in government grants, the business lost 700 million yuan.

Recently, the Ministry of Finance issued supportive policies, including subsidies for imports of crude oil processed and refined oil imports of value-added tax rebate policy. Jing said that Sinopec is China’s largest oil refining business, about 70% of the purchase of crude oil from the international community. Subsidies and the role of tax rebates is very limited, confined to control fluctuations in their performance, and any attempt to stop the downward trend.

Agricultural chemistry and chemical-based soda ash climaxes

In the rudimentary chemical commerce, said Wei Dong Li, as the ethylene cracker expansion of the finances founded on degree of petrochemical goods in the relentless down turn in disperses extend to narrow.

And downstream chemical financial gatherings, tdi, mdi (both for the goods produced of polyurethane raw materials) and the organic silicon development has moved into a interval of quick expansion, the charge is unwavering at present, not more radiant spots. However, the complete chemical development supported on the case of a flat, Dong Li-wei and soda that the growers will become the foundation for a greater room for the development of chemical development this year, the two sub-sectors. “Agriculture and the costs of soda ash will be more extensive advance in these two sub-industry profitability.”

Mdi goods as a outcome of expanding the groundwork in order that steady development presentation, Dong Li-wei suggested Yantai Wanhua anxiety (600309) (600309.sh). The accomplishment of the company’s 2007 incomes 7.804 billion yuan, an boost of 55.77%, snare earnings of 1.481 billion yuan, up 71.56 per share earnings of 0.89 yuan, with higher growth. Its sales come to 40.39 per hundred whole margin than the 2006 rate of 35.75% certain to increase. Mdi household charges as a outcome of important rises, mdi Product whole margin there has been a important pick-up, so to live at the household mdi sales 1 / 3 market share in Yantai Wanhua, its earnings margins will be a somewhat large boost imagination.