DHE(002221) Changjiang Securities·2024-10-29 02:35Investment Rating - The report maintains a "Buy" rating for Donghua Energy [7][10]. Core Views - The PDH (Propane Dehydrogenation) market remains sluggish, leading to pressure on the company's performance in the third quarter. The company reported a revenue of 23.733 billion yuan for the first nine months of 2024, a year-on-year increase of 16.63%, while the net profit attributable to shareholders was 131 million yuan, up 12.65% year-on-year. However, in Q3 2024, revenue reached 9.359 billion yuan, a year-on-year increase of 52.52% and a quarter-on-quarter increase of 28.89%, but net profit dropped to 21 million yuan, down 30.73% year-on-year and 61.46% quarter-on-quarter [3][4]. Summary by Sections Company Performance - In Q3 2024, the company experienced a decline in PDH market conditions, with the propylene-propane price spread at 657 USD/ton, down 23.2% quarter-on-quarter. The company has significant PDH and PP (Polypropylene) production capacity, and the completion of the Maoming project will position it as the largest PP producer globally [4][5]. Future Prospects - The company is focusing on hydrogen resource development, collaborating with China National Nuclear Corporation to build a high-temperature gas-cooled reactor nuclear power station in Maoming, which will significantly reduce production costs and promote sustainable development through green energy [5][6]. Strategic Initiatives - Donghua Energy is developing a composite materials and hydrogen energy industry chain centered around carbon fiber, collaborating with Shandong University for research and development. The company aims to create high-quality, low-cost carbon fiber products for various industries, including aerospace, automotive, and construction [6]. Financial Forecast - The company expects net profits attributable to shareholders to be 190 million yuan, 340 million yuan, and 470 million yuan for 2024, 2025, and 2026, respectively, corresponding to PE ratios of 76.9X, 42.7X, and 30.6X based on the closing price on October 25, 2024 [7][11].