Petrochemical sector: Q4 2022 may be a low point in performance, with significant profit recovery in Q1 2023

Starting from 2022 H2, due to factors such as inventory losses caused by the decline in oil prices and weak downstream demand, the operating performance of the petrochemical sector (excluding PetroChina and Sinopec) gradually weakened, and the overall performance for the year was also under pressure. In 2022, excluding PetroChina and Sinopec, 43 listed companies achieved a total revenue of 1.3952 trillion yuan, a year-on-year increase of 22.13%; Realize a net profit attributable to the parent company of 24.5 billion yuan, a year-on-year decrease of 57.73%; The gross profit margin and net profit margin were 9.99% and 1.76%, respectively, with a year-on-year increase of -5.42pcs and -3.32pcs. The performance of the petrochemical sector in Q1 2023 has significantly improved compared to the previous quarter. 2023Q1， Excluding PetroChina and Sinopec, the total revenue of 43 listed companies reached 339 billion yuan, a decrease of 5.55% compared to the previous period; Realize a net profit attributable to the parent company of 4.8 billion yuan, a month on month increase of 150.13%; The gross profit margin and net profit margin were 9.82% and 1.41%, respectively, with a month on month increase of+3.68pcs and+4.08pcs, respectively.

Basic sector: Profit slightly decreased in 2022, may rebound to the bottom in 2023

In 2022, 359 listed companies in the basic chemical industry achieved a total revenue of 2252.9 billion yuan, a year-on-year increase of 14.67%; Realize a net profit attributable to the parent company of 2011 billion yuan, a year-on-year decrease of 6.86%; The gross profit margin and net profit margin were 20.10% and 8.92%, respectively, with a year-on-year increase of -3.19pcts and -2.06pcts, respectively. On a quarterly basis, the revenue for Q1-Q4 in 2022 was 537.6 billion yuan, 6143 billion yuan, 5465 billion yuan, and 554.4 billion yuan, respectively, with a month on month increase of 14.27%, -11.05%, and 1.46% for Q2-Q4; The net profits attributable to the parent company were 63.1 billion yuan, 7.32 billion yuan, 40.5 billion yuan, and 24.3 billion yuan, respectively, with Q2-Q4 showing a month on month increase of 16.07%, a decrease of 44.69%, and a decrease of 39.98%. 2023Q1, 359 listed companies achieved a total revenue of 506.8 billion yuan, a year-on-year decrease of 5.73% and a month on month decrease of 8.60%; Realize a net profit attributable to the parent company of 32.9 billion yuan, a year-on-year decrease of 47.89% and a month on month increase of 35.24%; The gross profit margin and net profit margin were 17.21% and 6.48%, respectively, with year-on-year growth rates of -5.89pcs and -5.25pcs, and month on month growth rates of+0.58pcs and+2.10pcs, respectively. From the perspective of segmented fields, the current industries such as chemical fiber, titanium dioxide, tires, and organosilicon are basically at the bottom of the cycle. In the future, with the gradual recovery of domestic and foreign economies, the industry's prosperity is expected to rebound at the bottom.

Chemical industry: The overall business performance of the chemical industry in 2022 did not meet expectations, and the performance is under pressure

In 2022, the global macroeconomic situation is turbulent, and stable development is facing many challenges. Overseas, geopolitical conflicts continue to arise, energy crises are sweeping across the globe, and the risk of economic recession in Europe and America is also increasing; Domestically, the COVID-19 is spreading frequently, the real estate market continues to be depressed, and the national economic development is facing greater pressure. Against the backdrop of severe internal and external situations, the business performance of the chemical industry in 2022 fell short of expectations, putting pressure on performance. We have counted 404 listed chemical companies, and after excluding PetroChina and Sinopec, they achieved a total revenue of 3648 billion yuan in 2022, a year-on-year increase of 17.41%; The net profit attributable to the parent company was 225.6 billion yuan, a year-on-year decrease of 17.64%. Diphenyl ether manufacturer