STL(SZ:002648) Changjiang Securities·2024-07-25 03:01Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - The company reported a slight improvement in performance in Q2 2024, with a year-on-year revenue decrease of 4.59% to 194.00 billion yuan, while net profit increased by 12.51% to 20.56 billion yuan. The operating cash flow decreased by 26.50% to 21.15 billion yuan [4][5]. - In Q2 2024, the company achieved revenue of 105.96 billion yuan, a year-on-year decrease of 2.53% but a quarter-on-quarter increase of 20.34%. The net profit for the same period was 10.33 billion yuan, down 8.51% year-on-year but up 1.06% quarter-on-quarter [4][5]. Summary by Sections Financial Performance - For the first half of 2024, the company reported operating revenue of 194.00 billion yuan, a decrease of 4.59% year-on-year. The net profit attributable to the parent company was 20.56 billion yuan, an increase of 12.51% year-on-year. The net cash flow from operating activities was 21.15 billion yuan, down 26.50% year-on-year. In Q2 2024, the revenue was 105.96 billion yuan, a decrease of 2.53% year-on-year but an increase of 20.34% quarter-on-quarter. The net profit was 10.33 billion yuan, down 8.51% year-on-year but up 1.06% quarter-on-quarter [4][5]. Market Conditions - In Q2 2024, the price of ethane remained stable, while prices for most chemical products improved. The ethane price was 142.0 USD/ton, with a slight decline. The report anticipates that ethane prices will likely fluctuate between 100-150 USD/ton in the future. The average market prices for HDPE and butadiene in Q2 were 8,676 yuan/ton and 12,083 yuan/ton, respectively, reflecting quarter-on-quarter increases of 3.3% and 17.8% [5]. Project Developments - The company is progressing with the construction of the α-olefin comprehensive utilization high-end new materials industrial park project, with a total planned investment of approximately 26.6 billion yuan. The first phase of the multi-carbon alcohol project with an annual capacity of 800,000 tons was successfully put into production in July 2024 [6]. Future Projections - The company expects net profits attributable to the parent company for 2024, 2025, and 2026 to be 56.1 billion yuan, 78.8 billion yuan, and 113.0 billion yuan, respectively. The corresponding price-to-earnings ratios based on the closing price on July 19, 2024, are projected to be 10.8X, 7.7X, and 5.4X [6].