HLGF(SH:600346) Great Wall Securities·2024-09-02 06:45Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown significant improvement in profitability in the first half of 2024, driven by the release of PTA and new material product capacities, contributing to a second growth engine [3][9] - The company benefits from a decline in coal and raw material costs, alongside a differentiated recovery in demand within the chemical fiber industry [10] Financial Summary - Revenue and Profit Growth: The company reported a revenue of 112.596 billion yuan in H1 2024, a year-on-year increase of 2.87%. The net profit attributable to shareholders was 4.018 billion yuan, up 31.77% year-on-year [3] - Sales and Margins: The overall sales gross margin for H1 2024 was 11.86%, an increase of 0.78 percentage points compared to the same period last year. The net profit margin was 3.58%, up 0.79 percentage points year-on-year [3] - PTA and New Materials Performance: The PTA segment's revenue in H1 2024 was 38.732 billion yuan, a 35.19% increase year-on-year, while the new materials segment generated 21.062 billion yuan, up 40.61% year-on-year [4] - Future Projections: The company is expected to achieve revenues of 263.582 billion yuan, 278.054 billion yuan, and 288.629 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 8.568 billion yuan, 10.641 billion yuan, and 12.231 billion yuan [10] Industry Overview - The company operates in the petrochemical industry, which is currently experiencing a recovery in demand, particularly in the chemical fiber sector, while the real estate market remains weak [2][9]