EASTERN SHENGHONG(SZ:000301) Guohai Securities·2024-11-10 13:52Investment Rating - The report maintains a "Buy" rating for Dongfang Shenghong (000301) [2][8] Core Views - The company's performance is currently under pressure due to fluctuating crude oil prices, impacting refining profitability in Q3 2024 [2][3] - The long-term development is supported by the cultivation of a green low-carbon industrial chain, which is expected to enhance growth potential [4][8] Financial Performance Summary - In Q3 2024, the company reported revenue of 35.468 billion yuan, a decrease of 2.275 billion yuan year-on-year and a decline of 0.627 billion yuan quarter-on-quarter [3] - The net profit attributable to shareholders was -1.738 billion yuan, down 2.536 billion yuan year-on-year and down 1.809 billion yuan quarter-on-quarter [3] - The average price of Brent crude oil was 79 USD per barrel in Q3 2024, a decrease of 6 USD per barrel from the previous quarter [3] Business Overview - Dongfang Shenghong is a leading global energy and chemical enterprise with a fully integrated industrial chain, focusing on new energy and new materials [4] - The company has established the world's first green industrial chain for carbon dioxide capture and utilization, producing functional polyester fibers [4][8] - The company has a total refining capacity of 16 million tons per year and has achieved full coverage of three olefin production processes [4][8] Earnings Forecast - The company’s projected revenues for 2024, 2025, and 2026 are 153.3 billion yuan, 165.6 billion yuan, and 175.5 billion yuan, respectively [8][10] - The net profit forecast for 2024 is -1.433 billion yuan, with a recovery expected in 2025 and 2026, reaching 1.595 billion yuan and 2.550 billion yuan, respectively [8][10]