HLGF(SH:600346) Xin Lang Cai Jing·2025-04-18 08:30Core Viewpoint - Hengli Petrochemical reported a slight increase in revenue and net profit for 2024, driven by a favorable market environment and cost reduction strategies, despite a decline in non-recurring net profit [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 236.27 billion yuan, a year-on-year increase of 0.63% - The net profit attributable to shareholders was 7.04 billion yuan, up 2.01% year-on-year - The non-recurring net profit was 5.21 billion yuan, down 13.14% year-on-year - For Q4 2024, operating revenue was 58.51 billion yuan, a decrease of 5.14% year-on-year and 10.30% quarter-on-quarter - Q4 2024 net profit attributable to shareholders was 1.94 billion yuan, up 61.03% year-on-year and 78.39% quarter-on-quarter [1]. Cost and Efficiency - The overall sales gross margin for 2024 was 9.86%, a decrease of 1.39 percentage points from the previous year - Financial expenses decreased by 2.44% year-on-year, while sales and management expenses increased by 11.23% and 10.38%, respectively - R&D expenses rose by 24.20% year-on-year - The net profit margin for 2024 was 2.99%, an increase of 0.05 percentage points year-on-year [1][2]. Cash Flow and Working Capital - The net cash flow from operating activities was 22.73 billion yuan, a decrease of 3.41% year-on-year due to reduced sales collections - The net cash flow from investing activities was -20.90 billion yuan, while financing activities generated 7.82 billion yuan, a year-on-year decline of 21.11% - The cash and cash equivalents balance at the end of the period was 24.55 billion yuan, an increase of 63.37% year-on-year - Accounts receivable turnover decreased from 515.54 times in 2023 to 422.88 times, while inventory turnover increased from 6.03 times to 7.67 times [2]. Industry Trends and Demand - The petrochemical industry experienced expanded demand in 2024, with both production and sales increasing - The decline in crude oil and coal prices contributed to cost reduction and efficiency improvements for the company - The domestic textile supply chain showed steady recovery, with rapid growth in demand for civilian silk, benefiting the company's aromatic-PTA-polyester value chain [1][2]. New Material Production and Innovation - In 2024, several projects were launched, including a 1.6 million tons/year high-performance resin and new materials project, enhancing the company's capabilities in high-value downstream sectors - The annual production of 400,000 tons of high-performance special industrial silk was fully operational, supporting the automotive, chemical, and electronics industries - The Suzhou Fenhu base's 12 functional film production lines were fully operational, with an annual capacity of 470,000 tons, improving competitiveness in the high-end functional film sector [3]. Integrated Development Strategy - The company is a leader in implementing a full industrial chain strategy in polyester new materials, aiming to create a world-class integrated platform from crude oil to various high-value chemical products - The company has established significant processing capacities, including 20 million tons of crude oil and 5 million tons of coal, with advanced PTA production capabilities [4]. Future Outlook - Revenue projections for 2025-2027 are 247.14 billion yuan, 258.18 billion yuan, and 268.69 billion yuan, respectively, with net profits of 8.46 billion yuan, 10.75 billion yuan, and 12.01 billion yuan - The company is expected to benefit from the continued decline in raw material prices, new material capacity releases, and its integrated development strategy [5].