STL(SZ:002648) Soochow Securities·2024-10-24 16:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a total revenue of 32.28 billion yuan for Q3 2024, a year-on-year increase of 0.7%, and a net profit attributable to shareholders of 3.69 billion yuan, up 7.6% year-on-year [2] - The C2 segment's profitability has improved due to a decrease in ethane prices, with the average price in Q3 2024 at 124 USD/ton, down 20 USD/ton from the previous quarter [2] - New projects are progressing steadily, including the first phase of the Lianyungang α-olefin high-end new materials industrial park, which is expected to be completed by the end of 2025 [2] - The company forecasts net profits attributable to shareholders of 5.41 billion yuan in 2024, 6.4 billion yuan in 2025, and 9 billion yuan in 2026, with corresponding P/E ratios of 12, 10, and 7 times [2] Summary by Sections Financial Performance - For Q3 2024, the company achieved a gross margin of 23.6%, a year-on-year increase of 2.6 percentage points, and a net profit margin of 12.7%, a year-on-year decrease of 1.6 percentage points [2] - The total revenue for 2024 is projected to be 47.15 billion yuan, with a year-on-year growth rate of 13.65% [1][8] Project Development - The first phase of the C2 project in Lianyungang has commenced, with a total investment of 26.6 billion yuan, expected to be operational in early 2026 [2] - The company has also initiated the first phase of the 800,000-ton multi-carbon alcohol project, enhancing the resilience of the C3 industrial chain [2] Market Data - The closing price of the company's stock is 18.74 yuan, with a market capitalization of approximately 63.13 billion yuan [4] - The company has a P/E ratio of 13.28 based on the latest diluted earnings per share of 1.42 yuan [9]