BAOFENG ENERGY(SH:600989) Guotai Junan Securities·2024-08-16 06:42Investment Rating - The investment rating for the company is "Accumulate" [2] - The target price is set at 21.00, down from the previous forecast of 21.41 [2] Core Views - The report highlights a recovery in polyolefin profitability, ensuring strong growth potential for the company [6] - The company achieved a revenue of 16.897 billion yuan in the first half of 2024, a year-on-year increase of 29.09%, with a net profit attributable to shareholders of 3.305 billion yuan, up 46.44% year-on-year [6] - The report notes that the company’s production capacity is expected to grow significantly, with projects in Inner Mongolia and Ningdong set to contribute to future growth [6] Financial Summary - Revenue for 2022 was 28.43 billion yuan, projected to increase to 35.514 billion yuan in 2024, representing a growth of 21.9% [6] - Net profit attributable to shareholders for 2022 was 6.303 billion yuan, expected to rise to 7.867 billion yuan in 2024, reflecting a growth of 39.2% [6] - The company’s earnings per share (EPS) for 2024 is projected at 1.07 yuan, with further increases to 1.75 yuan in 2025 and 1.82 yuan in 2026 [6] Market Performance - The stock price has fluctuated between 13.16 and 17.84 yuan over the past 52 weeks [3] - The company’s market capitalization is approximately 113.814 billion yuan [3] - The company’s net asset value per share is 5.46 yuan, with a price-to-book ratio of 2.8 based on the current price [4] Production and Pricing Insights - Polyolefin production in the first half of 2024 reached 1.2227 million tons, a year-on-year increase of 87% [6] - The average prices for polyethylene and polypropylene in Q2 2024 were 7,300 yuan/ton and 6,794 yuan/ton, respectively, with increases of 5.43% and 4.15% quarter-on-quarter [6] - The report indicates that the domestic apparent consumption of polyolefins in the first half of 2024 was 37.06 million tons, up 3.3% year-on-year [6]