BAOFENG ENERGY(SH:600989) Guolian Securities·2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.68 CNY, based on the current price of 15.72 CNY [6][8]. Core Views - The company reported a revenue of 29.14 billion CNY in 2023, a year-on-year increase of 2%, while the net profit attributable to shareholders decreased by 10% to 5.65 billion CNY [2]. - The fourth quarter of 2023 showed a significant recovery with a revenue of 8.74 billion CNY, up 26% year-on-year and 19% quarter-on-quarter, driven by increased production and higher coke prices [3]. - The company is expected to see growth in 2024 due to multiple projects coming online, including a significant increase in polyethylene and polypropylene production capacity [4]. - The Inner Mongolia project, with an investment of 67.3 billion CNY, aims to establish a coal-to-olefins capacity of 4 million tons, which is projected to generate an average annual revenue of 21.3 billion CNY and increase net profit by 6.2 billion CNY [5]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 39.53 billion CNY, 57.51 billion CNY, and 62.11 billion CNY, respectively, with year-on-year growth rates of 36%, 46%, and 8% [6][7]. - The net profit attributable to shareholders is expected to reach 8.57 billion CNY in 2024, with a growth rate of 51.79% [7]. - The earnings per share (EPS) are projected to be 1.17 CNY, 1.90 CNY, and 2.08 CNY for 2024, 2025, and 2026, respectively [6][7].