BAOFENG ENERGY(SH:600989) Guohai Securities·2024-03-21 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 29.136 billion yuan in 2023, representing a year-on-year growth of 2.48%, while the net profit attributable to shareholders decreased by 10.34% to 5.651 billion yuan [5] - The company's olefin segment saw both sales and profitability increase, while the coking segment experienced a decline in profitability [6] - The company is recognized as a leader in coal-to-olefin production, with multiple projects progressing smoothly, indicating strong growth potential [12] Financial Performance Summary - In Q4 2023, the company reported revenue of 8.735 billion yuan, a year-on-year increase of 25.77% and a quarter-on-quarter increase of 19.48% [3] - The net profit for Q4 2023 was 1.760 billion yuan, up 89.25% year-on-year and 7.70% quarter-on-quarter [3] - The return on equity (ROE) for 2023 was 4.67%, an increase of 1.93 percentage points year-on-year [3] - The gross profit margin was 30.93%, up 9.64 percentage points year-on-year, while the net profit margin was 20.15%, an increase of 6.76 percentage points year-on-year [3] Product Segment Performance - The olefin segment generated revenue of 14.038 billion yuan, a year-on-year increase of 20.13%, with a gross margin of 30.25% [4] - The coking segment's revenue was 11.183 billion yuan, down 14.62% year-on-year, with a gross margin of 29.02% [4] - The fine chemical products segment achieved revenue of 3.670 billion yuan, a year-on-year increase of 5.68%, with a gross margin of 35.51% [4] Future Outlook - The company is expected to achieve net profits of 8.417 billion yuan, 13.889 billion yuan, and 15.808 billion yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 13.6, 8.2, and 7.2 [12][52] - The company has ongoing projects that are expected to enhance its production capacity significantly, particularly in the olefin segment [9]