China’s first quarter forfeit of 23.924 billion yuan enhancing development, petrochemical development since 2001, the first descent in yield

The chemical commerce is a bigger percentage of the supply market in China, China Petroleum (601857) (601857.sh) and Sinopec (600028) (600028.sh) is a large-scale heavyweight. First quarter of this year, the chemical commerce in the petrochemical and chemical commerce founded on two sub-sectors due to the extending increase in worldwide oil charges initiated by the influence of slower growth. China Petroleum and Chemical Industry Association’s facts and numbers display that China’s oil perfecting commerce in the first quarter decrease of 23.924 billion yuan, the petrochemical commerce since 2001, the first down turn in profits. At the identical time, crude oil charges regardless of the advancement of chemical goods founded on cost, but still reached but the appearance of down-cycle. Rising charges of crude oil is the “culprit”

The chemical industry is highly cyclical, in the past few years, China’s rapid economic development, rapid growth rate of fixed investment, so the expansion of the chemical industry and the growth rate of profit is very gratifying. However, environmental protection, as well as putting pressure on raw materials rose gradually, together with the global impact of China’s macro-economic slowdown. Thus, the expansion brought about by increased spending, the increase in financing costs, product gross margin decline and slowdown in sales and other factors may lead to expansion of the chemical industry started to enter a cyclical downward 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 development examiner Wei-Dong Li said that the enhancing development a immense forfeit, but the rural chemical and inorganic chemical in the soda ash development is thriving. This year, in global wares costs of raw elements costs and costs of rural yield and other elements, rural wares costs carry on to rise. In augmentation, due to the worse arrives at of the demand expansion rate speedier than productivity, effecting in soda ash prices.

Sinopec came arduous shrinking yield

The chemical industry’s primary financial gatherings are the two heavyweight China Petroleum and Sinopec. “From these two stages of the company’s enterprise, its upstream and downstream development flexible chain of bonds is without bias whole, but the with accent on on the higher arrives at of the China National Petroleum oil and gas exploitation, and the with accent on on the worse arrives at of China’s petrochemical enhancing industry. Therefore, the divergence from a enterprise purpose of scenery China’s Sinopec by high global oil costs, as well as the in the household enhanced oil charge controls a bigger impact. ” Jing said.

As a result of the continued deterioration of the current inflationary pressures, China’s refined oil prices and international prices of the phenomenon of inversion will be continued. Sinopec quarterly published this year showed that the larger the affected its performance, its basic earnings per share 0.077 yuan, net assets yield 2.13 percent, 332 billion yuan of business revenue. Judging from the net profit, 6.7 billion the first quarter of 65.78 percent year-on-year. And in fact as high as 7.4 billion in government subsidies, the company lost 700 million yuan.

Recently, the Ministry of Finance distributed supportive guidelines, embracing extra funds for deals of crude oil processed and enhanced oil deals of value-added duty reimbursement policy. Jing said that Sinopec is China’s greatest oil enhancing enterprise, about 70% of the pay for of crude oil from the global community. Subsidies and the job of duty rebates is very constricted, confined to manipulate fluctuations in their recital, and any endeavour to finish the heading down trend.

Agricultural chemistry and chemical-based soda ash best features

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 yield as a effect of advancing the foundation in order that unwavering expansion recital, Dong Li-wei recommended Yantai Wanhua worry (600309) (600309.sh). The attainment of the company’s 2007 profits 7.804 billion yuan, an advance of 55.77%, mesh yield of 1.481 billion yuan, up 71.56 per share yield of 0.89 yuan, with higher growth. Its sales arrived at 40.39 out of 100 total margin than the 2006 rate of 35.75% certain to increase. Mdi in the household costs as a effect of noteworthy growth, mdi Product total margin there has been a noteworthy pick-up, so to inhabit the in the household mdi sales 1 / 3 market share in Yantai Wanhua, its yield margins will be a quite large advance imagination.

China’s first quarter loss of 23.924 billion yuan refining industry, petrochemical industry since 2001, the first decline in profits

The chemical industry is a larger proportion of the stock market in China, China Petroleum (601857) (601857.sh) and Sinopec (600028) (600028.sh) is a big heavyweight. First quarter of this year, the chemical industry in the petrochemical and chemical industry based on two sub-sectors due to the continuing rise in international oil prices caused by the impact of slower growth. China Petroleum and Chemical Industry Association’s data show that China’s oil refining industry in the first quarter loss of 23.924 billion yuan, the petrochemical industry since 2001, the first decline in profits. At the same time, crude oil prices despite the promotion of chemical products based on price, but still arrived but the arrival of down-cycle. Rising costs of crude oil is the “culprit”

The chemical industry is highly cyclical, in the past few years, China’s rapid economic development, rapid growth rate of fixed investment, so the expansion of the chemical industry and the growth rate of profit is very gratifying. However, environmental protection, as well as putting pressure on raw materials rose gradually, together with the global impact of China’s macro-economic slowdown. Thus, the expansion brought about by increased spending, the increase in financing costs, product gross margin decline and slowdown in sales and other factors may lead to expansion of the chemical industry started to enter a cyclical downward trend.

Orient Securities oil and chemical industry, said Wang Jing, chief analyst in the long run, the petrochemical industry into a recession will not be so soon. Because, despite high oil prices, but the lower reaches of the industry demand for oil compared wang. “China is the world’s third-largest oil importing country, and catch up with Japan’s trend of second place. The continuing rise in international crude oil prices, the costs for imported crude oil increased, oil refining business losses, resulting in industry-wide profits decline. ”

GF Securities chemical development examiner Wei-Dong Li said that the enhancing development a immense forfeit, but the rural chemical and inorganic chemical in the soda ash development is thriving. This year, in global wares costs of raw elements costs and costs of rural yield and other elements, rural wares costs carry on to rise. In augmentation, due to the worse arrives at of the demand expansion rate speedier than productivity, effecting in soda ash prices.

Sinopec reached tough shrinking earnings

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 result of the continued deterioration of the current inflationary pressures, China’s refined oil prices and international prices of the phenomenon of inversion will be continued. Sinopec quarterly published this year showed that the larger the affected its performance, its basic earnings per share 0.077 yuan, net assets yield 2.13 percent, 332 billion yuan of business revenue. Judging from the net profit, 6.7 billion the first quarter of 65.78 percent year-on-year. And in fact as high as 7.4 billion in government subsidies, the company lost 700 million yuan.

Recently, the Ministry of Finance handed out supportive principles, encompassing grants for trades of crude oil processed and perfected oil trades of value-added levy refund policy. Jing said that Sinopec is China’s biggest oil perfecting enterprise, about 70% of the buy of crude oil from the worldwide community. Subsidies and the function of levy rebates is very restricted, confined to command fluctuations in their presentation, and any try to halt the down high ground trend.

Agricultural chemistry and chemical-based soda ash best features

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 businesses, tdi, mdi (both for the output of polyurethane raw materials) and the organic silicon commerce has went into a time span of fast expansion, the cost is steady at present, not numerous brilliant spots. However, the general chemical commerce founded on the case of a glossy, Dong Li-wei and soda that the ranchers will become the cornerstone for a bigger room for the development of chemical commerce this year, the two sub-sectors. “Agriculture and the charges of soda ash will be more considerable boost in these two sub-industry profitability.”

Mdi yield as a effect of advancing the foundation in order that unwavering expansion recital, Dong Li-wei recommended Yantai Wanhua worry (600309) (600309.sh). The attainment of the company’s 2007 profits 7.804 billion yuan, an advance of 55.77%, mesh yield of 1.481 billion yuan, up 71.56 per share yield of 0.89 yuan, with higher growth. Its sales arrived at 40.39 out of 100 total margin than the 2006 rate of 35.75% certain to increase. Mdi in the household costs as a effect of noteworthy growth, mdi Product total margin there has been a noteworthy pick-up, so to inhabit the in the household mdi sales 1 / 3 market share in Yantai Wanhua, its yield margins will be a quite large advance imagination.