Market Overview - The Shanghai Composite Index fell by 0.20% on April 28, with five sectors rising, led by banking and steel, which increased by 0.98% and 0.53% respectively [1] - The real estate and comprehensive sectors experienced the largest declines, down by 3.66% and 2.52% respectively [1] - The oil and petrochemical sector saw a slight decrease of 0.03% [1] Capital Flow Analysis - The main capital outflow from the two markets totaled 29.894 billion yuan, with only two sectors seeing net inflows: steel with 200 million yuan and oil and petrochemicals with 66.93 million yuan [1] - The electronics sector had the largest net outflow, totaling 3.104 billion yuan, followed by the automotive sector with a net outflow of 2.516 billion yuan [1] Oil and Petrochemical Sector Details - Within the oil and petrochemical sector, there are 48 stocks, with 9 rising and 36 falling, including one hitting the daily limit down [2] - The top net inflow stocks in this sector included China National Offshore Oil Corporation (CNOOC) with 53.071 million yuan, China Petroleum & Chemical Corporation (Sinopec) with 50.902 million yuan, and Huajin Chemical with 44.7347 million yuan [2] - The stocks with the largest net outflows included ST Xinchao with 39.0339 million yuan, Intercontinental Oil and Gas with 22.5732 million yuan, and Bohai Chemical with 17.033 million yuan [2][3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a decrease in revenue for Q1 2025, with total revenue at 9.161 billion yuan, a year-on-year decline of 3.05% and a quarter-on-quarter decline of 9.26% [2][6] - The net profit attributable to the parent company was -342 million yuan, indicating a reduction in losses both year-on-year and quarter-on-quarter [2][6] - The company is expected to see improvements in refining profitability due to a slight recovery in oil product margins, with the national refining 321 crack spread and Shandong local refining 321 crack spread increasing by 15.7% and 24.3% respectively [12] - The company has a strong cost advantage in its fertilizer segment, actively coordinating natural gas supply and optimizing production processes to meet spring farming fertilizer demand [12] - The company has made significant progress in cost optimization within its refining segment, achieving notable results through operational management improvements and equipment upgrades [12] - New product development has accelerated, with successful trials of 10 new grades of polyolefins and high-value industrial oils contributing to 37.12% of annual new product revenue [12] - The company operates a large-scale chemical platform focusing on three main industries: petrochemicals, fertilizers, and asphalt/lubricants, with substantial annual production capacities [12] - The company is projected to achieve net profits attributable to the parent company of 90 million yuan, 430 million yuan, and 640 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 91.7X, 19.6X, and 13.2X [12]

Financial Performance - The company reported a basic earnings per share of -0.2138 yuan for Q1 2025, an improvement of 31.76% compared to -0.3133 yuan in Q1 2024 [1] - The net profit for Q1 2025 was -3.42 billion yuan, showing a 31.74% improvement from -5.01 billion yuan in Q1 2024 [1] - The operating revenue decreased by 3.05% to 91.61 billion yuan in Q1 2025, down from 94.49 billion yuan in Q1 2024 [1] - The return on equity was -3.02% in Q1 2025, an improvement from -3.57% in Q1 2024 [1] Shareholder Structure - The top ten unrestricted shareholders hold a total of 83,362.32 million shares, accounting for 52.13% of the circulating shares, with a decrease of 296.40 million shares compared to the previous period [2] - The largest shareholder, Beifang Huajin Chemical Industry Group Co., Ltd., holds 43,444.54 million shares, representing 27.16% of the total share capital, with no change [3] - New entrants in the top ten shareholders include a pension product from Guotai Junan Securities, holding 728.60 million shares [3] Dividend Policy - The company has decided not to distribute or transfer any dividends this time [4]

Financial Performance - The company's revenue for Q1 2025 was ¥9,161,059,956.63, a decrease of 3.05% compared to ¥9,449,291,127.62 in the same period last year[2] - The net profit attributable to shareholders was -¥341,980,116.73, an improvement of 31.76% from -¥501,122,128.76 year-on-year[2] - The basic earnings per share improved to -¥0.2138, a 31.76% increase from -¥0.3133 in the previous year[2] - The weighted average return on equity was -3.02%, an improvement of 0.55% from -3.57% year-on-year[2] - Net profit for the current period is -¥338,789,291.31, an improvement from -¥505,591,946.15 in the previous period[15] Cash Flow - The net cash flow from operating activities was -¥5,516,874,112.97, representing a decline of 34.06% compared to -¥4,115,213,104.39 in the previous year[2] - Cash inflow from operating activities totaled ¥9,842,880,182.12, down from ¥10,088,864,697.39 in the previous period[16] - The net cash flow from financing activities was 2,146,932,066.26, a significant improvement from -72,950,138.59 in the previous period[17] - The cash flow from operating activities showed a total outflow of 15,359,754,295.09, compared to 14,204,077,801.78 in the previous period, marking an increase of about 8.1%[17] Assets and Liabilities - Total assets at the end of the reporting period were ¥28,491,979,636.14, an increase of 1.50% from ¥28,071,962,118.94 at the end of the previous year[2] - Total current assets at the end of the reporting period amount to ¥15,177,188,438.03, an increase from ¥14,435,407,013.31 at the beginning of the period[9] - Total liabilities increased to ¥9,177,575,610.62 from ¥7,536,429,052.46, reflecting a growth of about 21.8%[10] - Total equity attributable to shareholders decreased to ¥11,146,048,281.99 from ¥11,480,219,430.44 at the beginning of the period[11] Inventory and Borrowings - Inventory increased by 53.61% to ¥7,964,454,108.29 from ¥5,184,773,996.31, indicating a rise in production activities[5] - The company reported a significant increase in short-term borrowings, totaling ¥1,700,000,000.00, reflecting new financing activities[5] - Long-term borrowings decreased to ¥6,780,770,000.00 from ¥7,620,000,000.00, indicating a reduction of approximately 11.1%[10] Government Support and Shareholder Information - The company received government subsidies amounting to ¥5,046,074.88, contributing positively to its financial performance[4] - Total number of common shareholders at the end of the reporting period is 46,243[7] - The largest shareholder, Northern Huajin Chemical Industry Group Co., Ltd., holds 27.16% of shares, totaling 434,445,409 shares[7] Operating Costs - Total operating revenue for the current period is ¥9,161,059,956.63, a decrease of 3.06% from ¥9,449,291,127.62 in the previous period[13] - Total operating costs decreased to ¥9,363,596,455.79, down 5.73% from ¥9,933,470,217.71 in the previous period[13]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a significant decline in revenue and net profit for 2024, with total revenue of 34.596 billion yuan, a year-on-year decrease of 25.02%, and a net profit attributable to shareholders of -2.795 billion yuan, indicating a shift to loss [2][4]. - The fourth quarter of 2024 saw a revenue of 10.096 billion yuan, down 23.35% year-on-year but up 202.56% quarter-on-quarter, with a net profit of -906 million yuan, also reflecting a year-on-year loss but a reduction in losses compared to the previous quarter [2][4]. - The company is positioned as a leading integrated refining and chemical company in China, with a focus on three main sectors: petrochemicals, fertilizers, and asphalt/lubricants [11]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 34.596 billion yuan, with a gross profit margin of 7% [14]. - The operating profit was -2.901 billion yuan, representing -8% of revenue, and the net profit attributable to shareholders was -2.795 billion yuan [14]. - The company expects net profits for 2025 to be 90 million yuan, with projections of 430 million yuan and 640 million yuan for 2026 and 2027, respectively [11]. Market Position and Strategy - The company has optimized its refining operations, reducing the processing ratio of light crude oil from 16% to 12-13% [11]. - New product development has been emphasized, with a contribution rate of 37.12% from new products in the year [11]. - The company operates three production bases and has a total annual production capacity of 8.3 million tons of crude oil processing, 500,000 tons of ethylene, and 132,000 tons of urea [11]. Future Outlook - The report anticipates an improvement in refining profitability due to a rebound in oil prices and a recovery in downstream demand [11]. - The company is expected to maintain a strong market position, supported by its cost advantages in the fertilizer sector and ongoing optimization in its refining segment [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 34.596 billion yuan for 2024, a year-on-year decrease of 25.02%. The net profit attributable to the parent company was -2.795 billion yuan, indicating a loss compared to the previous year. The adjusted net profit was -2.898 billion yuan, also reflecting a loss year-on-year [2][6]. - In Q4 2024, the company achieved a revenue of 10.096 billion yuan, down 23.35% year-on-year but up 202.56% quarter-on-quarter. The net profit attributable to the parent company was -906 million yuan, showing a year-on-year loss but a reduction in loss compared to the previous quarter [2][6]. - The company is focusing on optimizing costs in its refining segment, with significant improvements in operational management and product structure. The processing ratio of light oil was reduced from 16% at the end of 2023 to a minimum of 12-13% [12]. - The company has developed new products, contributing 37.12% to its overall revenue, including innovative grades of polypropylene and high-value industrial oils [12]. - The company operates multiple large-scale chemical platforms, focusing on petrochemicals, fertilizers, and asphalt/lubricants, with a total annual production capacity of 8.3 million tons of crude oil processing and various chemical products [12]. - The projected net profits for 2025-2027 are estimated at 90 million yuan, 430 million yuan, and 640 million yuan, respectively, with corresponding price-to-earnings ratios of 86.5X, 18.5X, and 12.5X based on the closing price on April 22, 2025 [12].

点评： 油价下跌致库存损失增加，销量因三年一次年度大检修下滑， 2024 年业绩承压下行。 2024 年， ICE 布 伦特原油期货均价在 79.93 美元 / 桶，同比 -3% 。 2024 年，公司石化产品销量 419 万吨，同比 -25% ； 沥青产品销量 165 万吨，同比 -12% ；化肥产品销量 110 万吨，同比 -13% 。 2024 年，一方面受油价下跌 影响，公司库存损失增加，另一方面受公司石化及化肥等装置三年一次年度大检修影响，公司主要产品销 量同比大幅下滑，致公司 2024 年业绩承压下行。 点击注册小程序 特别申明： 本订阅号中所涉及的证券研究信息由光大证券研究所编写，仅面向光大证券专业投资者客户，用作新媒体形势下研究 信息和研究观点的沟通交流。非光大证券专业投资者客户，请勿订阅、接收或使用本订阅号中的任何信息。本订阅号 难以设置访问权限，若给您造成不便，敬请谅解。光大证券研究所不会因关注、收到或阅读本订阅号推送内容而视相 关人员为光大证券的客户。 报告摘要 事件： 公司发布 2024 年年度报告， 2024 年，公司实现营业收入 346 亿元，同比 -25% ，实现归母净利润 -2 ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4][6]. Core Views - The company's performance in 2024 is under pressure due to a significant decline in sales, attributed to a scheduled maintenance shutdown and falling oil prices, leading to increased inventory losses [2][4]. - The company has partnered with Saudi Aramco to develop a large integrated refining and chemical project, which is expected to enhance its competitive position in the market [3][4]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 34.6 billion yuan, a decrease of 25% year-on-year, and a net profit attributable to shareholders of -2.8 billion yuan, down 28.65 billion yuan year-on-year [1][4]. - The fourth quarter saw an operating revenue of 10.1 billion yuan, a year-on-year decline of 23%, but a quarter-on-quarter increase of 203% [1]. Sales Volume - The company's petrochemical product sales fell to 4.19 million tons, down 25% year-on-year, while asphalt and fertilizer product sales decreased by 12% and 13%, respectively [2][4]. Project Development - The integrated refining and chemical project with Saudi Aramco has a total investment of 83.7 billion yuan and is expected to process 30,000 barrels of oil per day, with full operation anticipated by 2026 [3][4]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted downward, with expected net profits of 110 million yuan, 281 million yuan, and 538 million yuan, respectively [4][10]. - The report highlights the company's potential to participate in the Saudi Aramco project, which could significantly enhance its competitive edge in the petrochemical sector [3][4].

Company Overview - Huajin Co., Ltd. closed at 4.96 yuan, down 1.20%, with a latest price-to-book ratio of 0.69 and a total market capitalization of 7.933 billion yuan [1] - As of March 31, 2025, the number of shareholders for Huajin Co. is 46,243, an increase of 30 from the previous count, with an average holding value of 352,800 yuan and an average holding quantity of 27,600 shares [1] Business Operations - The main business of Northern Huajin Chemical Industry Co., Ltd. includes the production and sales of petrochemicals and chemical fertilizers [1] - Key products include urea, liquid ammonia, crude oil processing and petroleum products, polyolefins, aromatic products, ABS products and by-products, butadiene, ethylene oxide, ethylene glycol products, and plastic products [1] Financial Performance - For the fiscal year 2024, the company reported a revenue of 34.596 billion yuan, a year-on-year decrease of 25.02% [1] - The net profit for the same period was -2,794,763,928.73 yuan, reflecting a year-on-year decline of 4,075.49% [1] - The sales gross margin stood at 7.50% [1] Industry Comparison - Huajin Co. has a trailing twelve months (TTM) price-to-earnings (PE) ratio of -2.84 and a static PE ratio of -2.84, with a market capitalization of 7.933 billion yuan [2] - The industry average PE ratios are 11.58 (TTM) and 11.51 (static), with an average market capitalization of 167.112 billion yuan [2] - The industry median PE ratios are 34.10 (TTM) and 37.94 (static), with a median market capitalization of 54.72 billion yuan [2]

Core Viewpoint - Huajin Co., Ltd. reported a significant decline in its 2024 financial performance, with a 25.02% drop in revenue and a net loss of 2.8 billion yuan, marking a staggering 4075.49% decrease in net profit compared to the previous year [1][2][3] Financial Performance - The company's total revenue for 2024 was 34.6 billion yuan, down from 46.1 billion yuan in 2023, reflecting a decrease of 25.02% [2] - The net profit attributable to shareholders was -2.8 billion yuan, a drastic decline from a profit of 70.3 million yuan in 2023, representing a decrease of 4075.49% [2] - The net profit after deducting non-recurring gains and losses was also negative at -2.9 billion yuan, compared to a profit of 11.5 million yuan in 2023, indicating a decline of 25,406.76% [2] Dividend Policy - Despite the poor financial results, the company proposed a cash dividend of 0.18 yuan per 10 shares (tax included) and did not plan to issue bonus shares or convert reserves into share capital [2] Industry Context - The petrochemical industry faced challenges in 2024, with overall revenue growth of only 2.1% and a profit decline of 8.8% according to national statistics [3] - The international oil market experienced significant volatility, contributing to reduced downstream demand in the petrochemical sector [3] - OPEC's recent downward revision of global oil demand forecasts for 2025 and 2026 further exacerbated the challenges faced by the industry [3] Historical Performance - The company's revenue peaked at 49.1 billion yuan in 2022, but profitability began to decline, with net profit dropping to 5.3 million yuan in 2022 and further to 703 million yuan in 2023 [4] - The drastic loss in 2024 represents a continuation of a troubling trend for the company, which has seen its financial performance fluctuate significantly over the years [4] Company Background - Huajin Co., Ltd. is the only publicly listed petrochemical platform under the China Ordnance Industry Group, involved in oil refining, ethylene production, and chemical fertilizers [5] - The company has faced financial difficulties in the past, including a risk of delisting in 2015, which led to speculation about potential asset injections from Zhihua Petroleum [6][7]