HYPC(000703) Huachuang Securities·2024-11-07 02:23Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 8.53 CNY based on a projected PB of 1.2 for 2025 [5][8]. Core Views - The company reported a revenue of 94.815 billion CNY for the first three quarters of 2024, a year-on-year decrease of 6.61%. The net profit attributable to shareholders was 231 million CNY, an increase of 11.93% year-on-year, while the net profit excluding non-recurring items dropped by 88.99% to 21 million CNY [2][5]. - The report highlights that the domestic chemical product performance is under pressure, but the polyester filament market is expected to improve [5]. - The company is progressing with its second phase of the Brunei project, which is anticipated to enhance growth potential [5]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 30.051 billion CNY, down 19.25% year-on-year and 9.24% quarter-on-quarter. The net profit attributable to shareholders was -199 million CNY, a significant decline of 253.14% year-on-year [2][4]. - The average operating rate for polyester filament has improved, with cash flows for POY and FDY turning positive since late October 2024 [5]. - The report notes a decrease in profit margins due to narrowing price spreads in the refining sector, with Q3 gross and net profit margins at 3.86% and -0.75%, respectively [4][5]. Product and Market Insights - The report indicates that the price spread for PX has decreased by approximately 23% quarter-on-quarter, impacting refinery profits significantly [4]. - The cash flow for domestic POY, FDY, and DTY in Q3 2024 showed improvements, with DTY cash flow increasing to over 550 CNY per ton [5]. - The company has initiated a fifth share repurchase plan, with an expected total amount of 125 to 250 million CNY, aimed at enhancing corporate governance and overall value [5].