The performance of the hottest chemical enterprise

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Performance rebound of chemical enterprises investment and M & A will occur intensively

performance rebound of chemical enterprises investment and M & A will occur intensively

July 30, 2018

[China paint information]

thanks to the rising prices of chemical products, the operating performance of chemical enterprises has recovered one after another, and the industry is entering a business cycle

a few days ago, Sinopec announced that its reported profit for the first half of the year increased by about 50% compared with the same period last year, with earnings per share of RMB 0.224. Sinopec said that in addition to the rise in international oil prices, the important reason for the profit growth this time is that its midstream and downstream businesses seized the favorable market situation, increased structural adjustment and optimization, and maintained a good level of efficiency. The company's profitability increased year-on-year, such as the ethylene output increased by 3.16% and the synthetic resin output increased by 3.41%

thanks to the increase in sales price and demand, the sales volume of kostron, separated from Bayer, increased by 10. 5% year on year After graphene was discovered in 2004, it quickly triggered a worldwide research fever of 4% to 3.9 billion euros. Among them, the sales volume of core business increased by 4.4%, achieving growth in all three business segments

in the second quarter of 2018, BASF Group also achieved a small increase in sales and revenue. "Compared with the same period last year, sales increased by 518million euros to 16.8 billion euros," said Dr. Bo mule, chairman of the Executive Board of BASF Europe The increase in selling prices in all business areas, especially functional materials and solutions and oil and gas business areas, was the main driver of performance growth. In addition, the sales volume of other business areas has increased except for the characteristic product business area. Looking at the first half of 2018, BASF's sales in the first half of 2018 increased by 307million euros year-on-year, reaching 33.4 billion euros. In particular, the high selling prices in the functional materials and solutions, chemicals and oil and gas business areas, as well as the growth in sales in other business areas except characteristic products, contributed to the increase in sales

first finance and economics understands that the overall recovery of the chemical industry is due to the rise in the price of upstream raw materials and the strong impact of downstream demand. Li Lei, President of SABIC North Asia region of Saudi Basic Industries Company, said that this round of recovery marks that the chemical industry is entering a business cycle, "which can probably last until 2019. Due to the large force value when stretching these samples"

the rise of the industry prosperity has brought huge cash flow to chemical enterprises, which has become the "economic foundation" for investment and M & A in the chemical industry at this stage. "The chemical industry is enjoying a boom cycle, and M & A and investment within the industry will occur more frequently." Li Lei said so

in fact, the chemical industry is cyclical. Investing at the high point of the industry will not bring great financial pressure to the financial statements. However, the construction process after investment will last for several years, and this period will occur at the low point of the industry, thus effectively avoiding the business pressure brought by the cyclical fluctuations of the industry

it is learned that the domestic chemical industry is making great progress, large projects are being prepared one after another, and private enterprises are also joining this wave

PetroChina, Sinochem and many local refining enterprises are also rapidly increasing their chemical business. Earlier, Sinochem also announced that the construction of the million ton ethylene project of its Quanzhou Petrochemical Company (hereinafter referred to as "Sinochem Quanzhou") has been officially started. The project is expected to be completed by CCCC on December 30, 2019 and put into operation in June 2020. In addition, at present, there are many refining and chemical integration projects under construction in China, such as the 1.2 million T/a ethylene project of Fujian Gulei petrochemical, the 10million T/a refining and chemical integration project of Zhongke Maozhan, the 20million T/a refining and chemical integration project of Zhejiang Petrochemical phase I, the 16million T/a refining and chemical integration project of Shenghong refining and chemical, etc

as one of the largest chemical markets in the world, BASF, a global chemical giant, will invest 10billion US dollars in China to build a chemical production base in Guangdong. Earlier "In addition to the comprehensive expertise from our partners bentele and Sigri, on July 9, Dr. Bo mule, chairman of the Executive Board of BASF Europe, and linshaochun, executive vice governor of Guangdong Province, jointly signed a non binding memorandum of understanding on cooperation in Berlin, Germany. It is understood that after the completion of the project, it will become the second largest project in Ludwigshafen, Germany and Antwerp, Belgium BASF is the third largest integrated production base in the world

not only focus on the Chinese market for investment expansion, but also the transnational nature of chemical giants determines these enterprises to invest globally. As a side transaction of Bayer's acquisition of Monsanto, BASF has learned that it will also complete the acquisition of related businesses of Bayer in the next August. The acquisition is a strategic complement to BASF's existing crop protection business, biotechnology business and digital applications, and marks BASF's entry into the seed business

Dr. Markus steilemann, the CEO of covestro, said, "in order to maintain long-term growth, we will further increase investment."

it is learned from kostron that kostron's investment plan includes capacity expansion in multiple locations, involving three business departments and major regions around the world. For example, the company has announced to invest about 100million euros to significantly expand the global film production scale to meet the rapidly growing demand. In addition, the company is also expanding the production of MDI plant in blonsbit, Germany and polycarbonate plant in Caojing, Shanghai

it is learned that AkzoNobel, with Dulux and other brands, is setting a new goal for the future development of the company. "We have set a target of 15billion euros (US $17.6 billion) for development in 2020; the return on investment has risen from 18% in 2017 to more than 25%." AkzoNobel chief operating officer yulude said recently

China first finance and economics noted that AkzoNobel's current performance is a little difficult to support this "ambition". According to its annual report, AkzoNobel's paint business sales in 2017 were 9.612 billion euros (about US $11.5 billion), a year-on-year increase of 2%; The operating profit was 825million euros, a year-on-year decrease of 10.62%; The profit was 832million euros, a year-on-year decrease of 14%. In terms of development goals, AkzoNobel needs to increase sales by about 6billion US dollars in three years, which means that the compound annual growth rate from 2018 to 2020 should reach 15%. Compared with the highly differentiated and diversified coating industry with fierce competition, this is obviously an "ambitious" goal. Judging from the development in recent years, it is very difficult for AkzoNobel to achieve this goal by relying solely on endogenous growth within three years. Therefore, the future will also seek to achieve through mergers and acquisitions

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