STL(SZ:002648) China Securities·2025-03-27 09:24Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is expected to achieve a revenue of 45.6 billion yuan in 2024, representing a year-on-year growth of 10.0%, and a net profit of 6.1 billion yuan, reflecting a year-on-year increase of 26.8% [2][3]. - The company faced production and sales impacts in the first half of the year due to maintenance on its C2 series units, but it significantly improved profitability in the second half, achieving a quarterly profit of 4 billion yuan in Q4, a 46% increase from the previous quarter [2][3]. - The C2 route focuses on products like EO/EG, and the company is set to launch ethanolamine production in 2024, enhancing its product diversification and supply chain [4]. - The company benefits from a cost advantage in its C2 ethane cracking process compared to oil-based routes, and the profitability of its C3 chain, particularly in acrylic acid and esters, remains stable [4]. - The company is also investing heavily in new product development, with a research and development expenditure of 1.75 billion yuan in 2024, a 7.7% increase year-on-year, which is expected to further enhance its operational efficiency and product offerings [4]. Summary by Sections Financial Performance - In 2024, the company is projected to have total assets of 68.3 billion yuan, a 5.8% increase year-on-year, with a revenue of 45.6 billion yuan and a net profit of 6.1 billion yuan, marking a 26.8% year-on-year growth [3][10]. - The Q4 profit reached a record high of 2.38 billion yuan, up 46% quarter-on-quarter [2][3]. Product Diversification and Cost Advantage - The company is enhancing its product portfolio with the upcoming launch of ethanolamine and is leveraging its cost advantages in the C2 ethane cracking process [4]. - The 800,000-ton multi-carbon alcohol project is expected to contribute significantly to profitability as it ramps up production [4]. Research and Development - The company is committed to innovation, with a planned R&D investment of 1.75 billion yuan in 2024, which is 7.7% higher than the previous year, indicating a focus on maximizing benefits across its supply chain [4].