STL(SZ:002648)2024-07-18 09:01Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 19.4 billion yuan for the first half of 2024, a year-on-year decrease of 4.6%, while the net profit attributable to shareholders was 2.06 billion yuan, an increase of 12.5% year-on-year [5] - The second quarter of 2024 saw a revenue of 10.6 billion yuan, a year-on-year decrease of 2.5% but a quarter-on-quarter increase of 20.3% [5] - The company’s C2 segment contributed significantly to profitability, with a net profit of 1.231 billion yuan from its subsidiary Lianyungang Petrochemical, despite a 10.35% decline year-on-year due to maintenance impacts [5] - The report highlights improvements in the price spread of downstream C2 products and cost optimization from technical upgrades in the ethane unit [5] - The successful commissioning of an 800,000-ton multi-carbon alcohol project strengthens the company's integrated advantages, while a new high-end materials project is set to enhance future growth [5] Financial Summary - The company’s total revenue is projected to reach 48.28 billion yuan in 2024, with a year-on-year growth rate of 16.4% [7] - The net profit attributable to shareholders is expected to be 5.461 billion yuan in 2024, reflecting a 14% year-on-year increase [7] - Earnings per share are forecasted to be 1.62 yuan in 2024, with a projected PE ratio of 11 [7] - The gross margin is expected to be 20% in 2024, with a return on equity (ROE) of 17.7% [7]