Petrochemical: PetroChina acquires SPC to build international development platform

1. Crude oil prices stood at 60 U.S. dollars, the price increase is expected to strengthen last week's crude oil prices by the weak dollar and the upward drive oil price oscillation upward, last week, WTI, bent respectively in 61.67 U.S. dollars/barrels and 60.78 dollars/barrel. Future crude oil prices are expected to continue to oscillate upward, but will face a 70-75 dollars/barrel of strong resistance.　　China's two major oil companies, the price of refined oil prices need to reach the level of 500-600 yuan/ton, but the postponement of adjustment time and the margin of adjustment will reduce market confidence in the pricing mechanism, the integration of the oil companies are expected to be again under pressure. 2. PetroChina buys SPC to build international operating platform PetroChina will invest 6.94 billion yuan (1.47 billion SGD) to acquire a 45% per cent stake in Singapore Oil (SPC), the company's new controlling shareholder, with a share of 20 million barrels of oil and gas reserves in 08 and its third largest refinery in Singapore, Refining capacity 285,000 bbl/day. 08 net profit of 230 million new yuan, net assets of 1.7 billion new yuan, the purchase price of static PE 14.2 times times, dynamic PE 17.2 times times, Pb 1.92 times times.　　This is PetroChina's first acquisition of overseas listed companies, but also a handful of downstream companies to strengthen downstream refining capacity may be a consideration. To build SPC is to become the overseas strategic platform of PetroChina is the acquisition purpose. PetroChina has long been subject to control, international expansion operations remain at the group level operations, and SPC's main including oil trade, will be conducive to strengthening international oil trading capacity, suitable for overseas business platform; On the other hand, SPC's transferor kepple is one of the world's largest offshore drilling rig manufacturers,　　Taking this acquisition as an opportunity to optimize the business structure of the enterprise, it is possible to enhance cooperation with PetroChina in the field of offshore oil and other fields. 3. Spandex, viscose continue to show eye-catching chemical fiber market performance continued to differentiate, spandex, viscose continue to show eye-catching, acrylic, nylon market calm, maintain the early prices, polyester polyester prices continue to decline. (1) International spandex demand to maintain upward trend, the April spandex export chain growth of 27%, domestic demand exuberant, resulting in supply tension. (2) Downstream of cotton demand strong support viscose staple fiber price increases, Jilin chemical fiber production has intensified the supply of viscose filament tension. (3) Some PX, PTA plant gradually put into production to ease the early raw material supply tension, PTA, polyester prices continue to fall, and then drive down the price of polyester yarn downstream.　　(4) Textile industry recovery trend is determined, the relevant listed companies Huafeng Spandex, Shandong Hailong, Shanxi three-dimensional will continue to benefit. 4. Blonde Tech Trail: Start rate down we've learned recently that blond hair has fallen in recent years in Guangzhou and Shanghai, starting at the beginning of April and beginning in the early May, with various downstream demand areas as follows: 1 CRT color TV materials decline sharply (09), flat-screen TV material decline ( 1Q09 Platform TV sales growthMore than 150%, April down to about 90%, 5 June may be year-on-year, the chain growth decline, April-June is the off-season.　　Air conditioning May chain is growing, flat, January-April negative growth.　　2 Office supplies notebook computer and desktop Year-on-year domestic sales growth slightly decline (from 1q09 10-20% down to less than 10%), but the chain may be slightly increased. 3 in terms of car orders, the Guangzhou base has not changed much, and the Shanghai area has slipped by about more than 10 percentage points, which may reflect the cautious expectations of the automakers for June or July, which is expected to sell about 100,000 tonnes of auto material in 09, accounting for 25% of the total. We believe that the current Guangzhou, Shanghai orders fall about 15% of the main reason may be the downstream demand, blonde due to the wider downstream, can more timely reflect the downstream automotive, home appliances, office supplies demand changes. As a result, the growth of blond hair conforms to the "economic recovery multiplier" judgment. Buying blond hair is about buying an economic recovery, and vice versa.