HLGF(SH:600346) Huaan Securities·2024-08-27 06:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a stable performance in Q2 2024, with revenue of 112.60 billion yuan, a year-on-year increase of 2.87%, and a net profit attributable to shareholders of 4.02 billion yuan, up 31.77% year-on-year [2] - The company is leveraging its integrated refining and chemical platform to expand its capital expenditures and enhance growth potential, focusing on high-end polyester, functional films, biodegradable materials, and new energy chemicals [4][9] - The company is expected to see significant improvements in its annual performance, with net profits projected at 8.97 billion yuan, 12.94 billion yuan, and 13.19 billion yuan for 2024, 2025, and 2026 respectively, corresponding to current P/E ratios of 10.38X, 7.19X, and 7.06X [9] Summary by Sections Financial Performance - In Q2 2024, the company achieved a gross margin of 12.61%, with a net margin of 3.48%, reflecting a slight year-on-year decrease in profitability metrics [3] - The company’s revenue for 2023 is projected at 234.87 billion yuan, with a year-on-year growth of 5.6% [7] - The net profit attributable to shareholders for 2023 is expected to be 6.91 billion yuan, showing a significant year-on-year increase of 197.8% [7] Operational Insights - The company faced production and sales impacts due to maintenance activities, with Q2 production of refining products, PTA, and new materials showing a quarter-on-quarter decline [3] - The company is actively working on new projects, including a 1.6 million tons/year high-performance resin and new materials project, expected to be fully operational in the second half of 2024 [4][8] Market Positioning - The company is strategically positioned to capitalize on the domestic demand for high-end materials, aiming to reduce reliance on imported products and enhance its competitive edge in the market [4][9] - The ongoing projects in Suzhou and Nantong are set to establish the company as a leading player in the functional film materials sector globally [8]