wanhua(SH:600309)2024-03-24 16:00Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 77.24 and a sector rating of "Outperform the Market" [1]. Core Views - The company's operating performance is steadily improving, with a focus on technological research and integrated industrial layout, maintaining a "Buy" rating [4][5]. - In 2023, the company achieved operating revenue of RMB 175.36 billion, a year-on-year increase of 5.92%, and a net profit attributable to shareholders of RMB 16.82 billion, up 3.59% year-on-year [4][7]. - The company’s gross profit margin for 2023 was 16.79%, an increase of 0.22 percentage points year-on-year, indicating a stabilization and improvement in profitability [5]. Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of RMB 42.81 billion, a year-on-year increase of 21.80%, and a net profit of RMB 4.11 billion, up 56.65% year-on-year [4][8]. - The company’s gross profit margins for different segments in 2023 were 27.69% for polyurethane, 3.51% for petrochemicals, and 21.42% for fine chemicals, with the polyurethane segment showing significant improvement [5]. Production Capacity and Innovation - The company successfully released new production capacities, including the acquisition of Jili Chemical and the commissioning of several new plants, leading to significant increases in production and sales volumes [5]. - R&D investment reached RMB 4.08 billion in 2023, a year-on-year increase of 19.33%, supporting ongoing technological innovation and product diversification [5]. Future Outlook - The company expects EPS for 2024-2026 to be RMB 6.51, RMB 7.79, and RMB 8.54 respectively, with corresponding P/E ratios of 15.0, 12.6, and 11.5, reflecting confidence in its integrated advantages and R&D capabilities [5][9].