DHE(002221) Changjiang Securities·2025-05-07 14:17Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue of 7.98 billion yuan for Q1 2025, representing a year-on-year increase of 12.18% and a quarter-on-quarter increase of 10.75%. However, the net profit attributable to shareholders was 53 million yuan, a year-on-year decrease of 5.68% and a quarter-on-quarter decrease of 83.18%. The non-recurring net profit was 31 million yuan, showing a year-on-year increase of 23.16% and a quarter-on-quarter increase of 3113.61% [2][6]. Summary by Sections Company Overview - The company is positioned in the PDH (Propane Dehydrogenation) sector, which is currently experiencing a downturn. The company has significant PDH and PP (Polypropylene) production capacity, and the completion of the Maoming project will make it the largest PP producer globally [13]. Financial Performance - For Q1 2025, the company achieved a revenue of 7.98 billion yuan, with a year-on-year growth of 12.18% and a quarter-on-quarter growth of 10.75%. The net profit attributable to shareholders was 53 million yuan, down 5.68% year-on-year and down 83.18% quarter-on-quarter. The non-recurring net profit was 31 million yuan, up 23.16% year-on-year and up 3113.61% quarter-on-quarter [2][6]. Future Outlook - The company is focusing on developing a carbon fiber and hydrogen energy industry chain, leveraging its existing C3 industry chain. It aims to create a closed-loop industrial chain from PDH to carbon fiber production, significantly reducing raw material costs. The Maoming base is expected to provide essential raw materials for carbon fiber production [13]. Production Capacity - The company has established production facilities across various bases, including Ningbo and Zhangjiagang, with significant capacities for PDH and PP production. The Ningbo base is projected to produce 1.2156 million tons of propylene and 1.3275 million tons of polypropylene in 2024, exceeding planned completion rates [13]. Profit Forecast - The company forecasts net profits attributable to shareholders of 230 million yuan, 380 million yuan, and 580 million yuan for 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios based on the closing price on May 6, 2025, are projected to be 56.3X, 34.2X, and 22.2X [13].