DHE(SZ:002221)2022-12-06 10:50Group 1: Industry Overview - The global propylene demand is approximately 90 million tons, while polypropylene demand is around 61 million tons [2] - The average growth rate of polypropylene (PP) demand over the past 15 years is 10%, and future domestic PP demand is expected to exceed GDP growth [4] Group 2: Technology Advantages - The propane dehydrogenation (PDH) technology used by the company has several advantages, including high technical content, simple and stable process, abundant raw material sources, low energy consumption, safety, and environmental protection [2] - PDH is becoming the most competitive production technology in the propylene industry due to its high product quality, high conversion rate, and low by-product generation [2] Group 3: Market Potential - The company focuses on polypropylene, which has extensive applications in various sectors such as automotive, high-speed rail, appliances, and daily necessities, indicating a strong market demand [3] - There is significant room for growth in China's polypropylene consumption compared to developed countries, presenting a substantial development opportunity [3] Group 4: Logistics and Resource Control - The company has a storage capacity of 628,000 cubic meters for LPG and an annual turnover capacity exceeding 3 million tons, with multiple docks to support logistics [4] - The expansion of the Panama Canal is expected to save approximately 20 days of shipping time for propane and liquefied gas from the U.S. to China, enhancing resource acquisition [4] Group 5: Future Strategies - The company aims to expand its energy trading and downstream bulk new materials product lines, achieving a larger industrial layout [5] - The enlarged trading operations will enable the company to engage in supply chain financial services such as cargo exchange, letter of credit financing, and warehouse receipt pledge financing [5]