Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 10.00 [7][8] Core Views - The company reported a revenue of RMB 14.18 billion for 2024, a decrease of 2.2% year-on-year, while the net profit attributable to the parent company was RMB 0.81 billion, an increase of 14.6% year-on-year [1] - The profitability of refrigerants is expected to continue improving, leading to a positive outlook for the company [1][4] - The company’s net profit for 2024 was below expectations due to significant losses from the disposal of real estate business [1] Revenue and Profitability Analysis - The revenue from the polymer materials segment decreased by 16% to RMB 3.83 billion, while the gross profit increased by 51% to RMB 0.51 billion due to cost control measures [2] - The organic silicon segment saw a revenue increase of 7.3% to RMB 5.21 billion, with gross profit turning positive at RMB 0.10 billion [2] - The refrigerant segment benefited from supply-demand dynamics, with revenue increasing by 13% to RMB 3.25 billion and gross profit rising by 160% to RMB 0.81 billion [2] - The overall gross margin improved by 4.8 percentage points to 21.6%, while the expense ratio decreased by 1.1 percentage points to 13.3% [2] Price Trends and Market Conditions - As of April 23, 2024, the prices for refrigerants R22, R32, R125, and R134a increased by 9%, 13%, 7%, and 11% respectively since the beginning of the year, indicating a tight supply and sustained demand from downstream sectors [3] - Prices for PTFE and PVDF materials showed slight increases, while some organic silicon products experienced minor declines [3] Profit Forecast and Valuation - The profit forecast for the company has been slightly adjusted upwards, with expected net profits of RMB 1.62 billion, RMB 2.10 billion, and RMB 2.37 billion for 2025, 2026, and 2027 respectively [4] - The report assigns a price-to-earnings ratio of 10x for 2025, reflecting a discount compared to comparable companies, leading to a target price of HKD 10.00 [4]
东岳集团（00189）：制冷剂盈利上行，氟硅材料静待复苏