STL(SZ:002648) Shanxi Securities·2024-10-23 02:30Investment Rating - The report maintains a "Buy-B" rating for the company [4] Core Views - The company achieved a revenue of 32.275 billion yuan in Q3 2024, a year-on-year increase of 0.71%, and a net profit of 3.693 billion yuan, up 7.64% year-on-year. Q3 revenue was 12.875 billion yuan, reflecting a 9.89% year-on-year increase and a 21.51% quarter-on-quarter increase [2] - The ethane-ethylene cracking margin has steadily expanded, improving profitability. In Q3 2024, the gross margin was 23.62%, up 3.02 percentage points quarter-on-quarter, and the net margin was 12.70%, up 2.96 percentage points quarter-on-quarter [3] - The multi-carbon alcohol project has commenced production, contributing to incremental growth. The first phase of the 800,000-ton multi-carbon alcohol project was launched in July 2024, addressing upstream and downstream raw material matching issues [3] Summary by Sections Financial Performance - The company reported a net cash flow from operating activities of 5.694 billion yuan, a year-on-year increase of 24.72%. The expense ratio in Q3 2024 was 8.06%, down 0.34 percentage points quarter-on-quarter [3] - Adjusted net profits for 2024-2026 are projected to be 5.615 billion, 6.306 billion, and 6.545 billion yuan, respectively, with corresponding PE ratios of 11.4, 10.1, and 9.7 times [4] Market Data - As of October 22, 2024, the closing price was 18.93 yuan, with a year-to-date high of 20.54 yuan and a low of 12.74 yuan. The circulating A-share market value is 63.726 billion yuan, and the total market value is 63.768 billion yuan [1]