JINNENG(SH:603113) KAIYUAN SECURITIES·2024-11-01 08:01Investment Rating - The investment rating for the company is maintained as "Buy" [1] Core Views - The report highlights an improvement in Q3 earnings, with a focus on the full production of the second phase of the olefin project and the recovery of the industry [2] - The company achieved a revenue of 12.15 billion yuan in the first three quarters of 2024, a year-on-year increase of 11.33%, while the net profit attributable to shareholders was a loss of 32 million yuan, a decrease of 38 million yuan year-on-year [2] - The report anticipates significant cost reductions and efficiency improvements due to the scale effects from the second phase of the olefin project in Qingdao, leading to an upward revision of profit forecasts for 2024-2026 [2] Financial Summary - For Q3 2024, the company reported a revenue of 5.26 billion yuan, a quarter-on-quarter increase of 50.44%, and a net profit of 11 million yuan, a quarter-on-quarter increase of 300,000 yuan [2] - The projected net profits for 2024-2026 are 11 million yuan, 370 million yuan, and 650 million yuan respectively, with corresponding EPS of 0.01 yuan, 0.43 yuan, and 0.77 yuan [2][3] - The company's total market capitalization is approximately 4.994 billion yuan, with a current stock price of 5.89 yuan [1] Segment Performance - Olefin segment: Q3 2024 production was 459,000 tons, a quarter-on-quarter increase of 174.6%, with sales of 448,000 tons, a quarter-on-quarter increase of 194.3% [2] - Carbon black segment: Q3 2024 production was 177,000 tons, with sales of 185,000 tons, and a slight decrease in price [2] - Coking segment: Q3 2024 production and sales of coke products were 316,000 tons, both showing declines [2] Project Developments - The second phase of the Qingdao olefin project has been fully operational since the second half of 2024, significantly increasing production capacity [2] - The company is focusing on circular chemical projects at its two main bases, with the Qingdao base expected to enhance energy utilization and improve competitiveness [2]