SMIC(SH:600810) Guotai Junan Securities·2024-06-19 04:31Investment Rating - The report maintains a rating of "Accumulate" for the company [21] Core Views - The company plans to divest 71% of its stake in the polycarbonate company to focus on its nylon core business, which is expected to improve profitability by shedding loss-making assets [29] - The termination of the Bisphenol A Phase II project is aimed at alleviating pressure on the polycarbonate industry chain, as the market conditions for Bisphenol A are currently weak [29] - The company is expanding its upstream and downstream supply chain, with projects in hydrogen ammonia and caprolactam, and is entering the high-end civilian nylon 66 market through partnerships [29] Financial Summary - Revenue for 2022 was 14,572 million, with a projected decline to 12,919 million in 2023, followed by a recovery to 13,832 million in 2024 [5] - Net profit attributable to the parent company dropped significantly from 399 million in 2022 to 123 million in 2023, with a forecasted recovery to 406 million in 2024 [5] - The company’s earnings per share (EPS) is projected to be 0.39 in 2024, 0.57 in 2025, and 0.70 in 2026 [29] Market Data - The stock price has fluctuated between 5.27 and 8.00 over the past 52 weeks, with a current market capitalization of 6,912 million [3] - The company’s price-to-earnings (P/E) ratio is projected to be 17.01 for 2024, decreasing to 9.46 by 2026 [5]