HUALU-HENGSHENG(SH:600426) Shanxi Securities·2025-04-08 10:46Investment Rating - The report maintains a "Buy-B" rating for the company Hualu Hengsheng (600426.SH) [5][14]. Core Views - The chemical giant shows steady growth in performance, with the Jingzhou project contributing to incremental gains [6]. - In 2024, the company achieved total operating revenue of 34.226 billion yuan, a year-on-year increase of 25.55%, and a net profit attributable to shareholders of 3.903 billion yuan, up 9.14% year-on-year [7][9]. - The company has a strong sales channel, with stable growth in the sales volume of major products [10]. Financial Performance - For 2024, the company reported a total operating revenue of 342.26 billion yuan, with a gross margin of 18.71% and a net margin of 12.21%, both showing a decline compared to the previous year [9]. - The revenue breakdown by product includes new materials and renewable energy products at 16.433 billion yuan (up 6.19%), chemical fertilizers at 7.297 billion yuan (up 28.55%), acetic acid and derivatives at 4.070 billion yuan (up 98.34%), and organic amine products at 2.511 billion yuan (down 6.12%) [9]. - The company’s net asset return rate is 12.73% with a diluted earnings per share of 1.84 yuan [3]. Future Projections - The company is expected to achieve net profits of 4.258 billion yuan, 4.924 billion yuan, and 5.656 billion yuan for the years 2025, 2026, and 2027 respectively, corresponding to price-to-earnings ratios of 10, 9, and 8 times [12]. - The report highlights the company's integrated industrial chain layout and cost control advantages as key growth drivers for future performance [12]. Market Position - The company has significantly improved its market share in liquid ammonia and acetic acid, while maintaining a leading position in organic amine products [10]. - The company’s subsidiary in Jingzhou achieved a revenue of 7.498 billion yuan in 2024, marking a 501% year-on-year increase [11].