RSPC(002493) 华鑫证券·2024-08-29 02:12Investment Rating - The report assigns a "Buy" rating to Rongsheng Petrochemical (002493 SZ) for the first time [1] Core Views - Rongsheng Petrochemical's H1 2024 performance shows significant improvement with a turnaround in net profit attributable to parent company and enhanced profitability [1] - The company's refining products drove performance while chemical products saw improved profitability despite cost constraints [4] - Cash flow increased substantially, providing a "safety cushion" for stable development [5] - The integrated refining and chemical sector's advantages are expected to gradually emerge [6] Financial Performance - H1 2024 revenue reached 161 25 billion yuan, up 4 35% YoY [3] - Net profit attributable to parent company was 858 million yuan, a 176 15% YoY increase [3] - Q2 2024 revenue was 80 16 billion yuan, down 5 48% YoY and 1 14% QoQ [3] - Operating cash flow improved from -2 279 billion yuan in H1 2023 to 8 393 billion yuan in H1 2024 [5] - Cash and cash equivalents balance increased by 3 645 billion yuan to 17 01 billion yuan [5] Business Segments - Refining products revenue reached 59 8 billion yuan, up 4 8 billion yuan YoY with gross margin increasing by 1 1 percentage points [4] - Chemical products revenue decreased by 1 2 billion yuan but gross margin rose significantly by 7 03 percentage points to 14 72% [4] - PTA and polyester film board segments generated 26 1 billion yuan and 8 5 billion yuan respectively [4] - Subsidiary Zhejiang Petrochemical turned profitable with 2 03 billion yuan net profit [4] Integrated Refining and Chemical Project - Zhejiang Petrochemical has become a world-class integrated refining and chemical base with annual capacities of 40 million tons of oil refining, 8 8 million tons of paraxylene, and 4 2 million tons of ethylene processing [6] - The project features the world's largest single-series scale for multiple units including hydrogenation, reforming, and PX [6] - The integration rate ranks first globally, maximizing downstream chemical product production efficiency and extending the chemical industry chain [6] Financial Forecasts - 2024-2026 EPS predicted at 0 42, 0 68, and 0 86 yuan respectively [7] - Current PE ratios for 2024-2026 estimated at 20 5x, 12 5x, and 9 9x [7] - 2024-2026 revenue growth forecasted at 9 8%, 10 3%, and 5 4% respectively [11] - Net profit attributable to parent company expected to grow 265 4% in 2024 and 63 6% in 2025 [11] - ROE projected to increase from 1 2% in 2023 to 7 6% in 2026 [11]