BAOFENG ENERGY(SH:600989) Huaxin Securities·2025-03-14 15:51Investment Rating - The report maintains a "Buy" investment rating for Baofeng Energy [1][10]. Core Views - The significant increase in the production and sales of polyolefins has driven the company's performance, with a notable year-on-year revenue growth of 13.21% and a net profit growth of 12.16% for 2024 [1][2]. - The company has achieved substantial capacity growth in polyolefins, with a 61.90% increase in capacity compared to the end of 2023, contributing to the rise in production and sales [2]. - The company is expected to continue to enhance its dividend yield, reflecting its investment value, with a cash dividend distribution of 3.007 billion yuan for 2024, resulting in a dividend yield of 5.04% [4][9]. Summary by Sections Financial Performance - In 2024, Baofeng Energy reported total revenue of 32.983 billion yuan and a net profit attributable to shareholders of 6.338 billion yuan, marking a year-on-year increase of 13.21% and 12.16% respectively [1][12]. - The fourth quarter of 2024 saw a slight decline in revenue to 8.708 billion yuan, down 0.3% year-on-year, but an increase of 18.04% quarter-on-quarter, with a net profit of 1.801 billion yuan, up 2.33% year-on-year and 46.16% quarter-on-quarter [1]. Production and Sales - The company achieved a production volume of 1.133 million tons of polyethylene and 1.173 million tons of polypropylene in 2024, representing year-on-year increases of 34.95% and 56.71% respectively [2]. - Sales figures for polyethylene and polypropylene were 1.135 million tons and 1.165 million tons, with year-on-year growth of 36.36% and 54.74% respectively [2]. Dividend Policy - The company distributed a total cash dividend of 3.007 billion yuan in 2024, with a per-share distribution of 0.4598 yuan for minority shareholders and 0.3891 yuan for major shareholders, resulting in a dividend payout ratio of 47.44% [4][9]. Future Earnings Forecast - The forecast for net profit attributable to shareholders for 2025, 2026, and 2027 is 10.185 billion yuan, 12.114 billion yuan, and 13.715 billion yuan respectively, with corresponding price-to-earnings ratios of 12.6, 10.6, and 9.4 [10][12].