JHEC(SH:600273) Jin Rong Jie·2025-04-09 14:05Core Viewpoint - 嘉化能源 reported a revenue increase but faced significant net profit decline, indicating challenges in cost control and market competition [1][4]. Group 1: Financial Performance - In 2024, 嘉化能源 achieved total revenue of 9.153 billion, a year-on-year increase of 4.32%, while net profit attributable to shareholders was 1.008 billion, down 14.57% [1]. - The company's non-recurring net profit was 0.947 billion, reflecting a decrease of 13.07% year-on-year, highlighting profitability issues despite revenue growth [1]. Group 2: Business Segments - The main business segments include chemicals (64.3% of revenue), energy (20.36%), and port operations, with the fatty alcohol series products generating 3.102 billion in sales, up 22.06% [4]. - Sales of polyvinyl chloride products grew only 0.20%, while the chlor-alkali business saw a revenue decline of 5.94%, and sulfonated pharmaceutical products dropped significantly by 24.78% [4]. - Steam business revenue decreased by 6.05% due to falling coal prices, indicating pressure from rising raw material costs and weak downstream demand [4]. Group 3: Clean Energy Development - 嘉化能源's clean energy sector showed promising growth, with photovoltaic installed capacity reaching 222 MW and annual power generation of 240.7589 million kWh, a 13.47% increase [5]. - Distributed photovoltaic power generation increased by 52.03%, becoming a key growth driver in clean energy [5]. - Despite strong performance, clean energy's contribution to overall revenue remains small, with no separate revenue reporting for this segment in the financial statements [5][6]. Group 4: Future Outlook and Investments - 嘉化能源 plans to repurchase shares worth 400-600 million at a price not exceeding 12.01 per share to boost market confidence [7]. - The company’s subsidiary plans to invest up to 1.25 billion in a high-performance synthetic rubber project, expected to generate approximately 1.78 billion in annual revenue post-2027 [7]. - Concerns remain regarding the company's future growth, as reliance on core business for sustainable growth is critical, and the investment return period for the synthetic rubber project is uncertain [7].