STL(SZ:002648) Tianfeng Securities·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [8]. Core Views - The company experienced a significant increase in net profit for 2023, reaching 4.789 billion yuan, a year-on-year increase of 54.71%. The fourth quarter alone saw a remarkable increase of 2693.91% in net profit [1]. - The company benefits from a cost advantage in its ethane route, with the average price of ethane dropping to 19.3 cents per gallon in 2024, down from 24.3 cents per gallon in 2023. This is expected to further enhance the company's performance in 2024 [2]. - The profitability of acrylic esters is anticipated to improve, with the average profit for butyl acrylate in 2023 being 71.9 yuan per ton, a recovery from a loss of 464.7 yuan per ton in 2022. The profit is projected to rise to 124.8 yuan per ton in 2024 [3]. - New projects are entering the environmental assessment phase, with the first phase of the Lianyungang Petrochemical Co., Ltd. alpha-olefin comprehensive utilization project expected to double ethylene production capacity from 2.5 million tons to 5 million tons [4]. - The company is expected to maintain its low-cost expansion due to the anticipated increase in ethane supply, supported by rising natural gas production [5]. - Profit forecasts for the company are set at 5.72097 billion yuan for 2024, 6.77368 billion yuan for 2025, and 8.71006 billion yuan for 2026, with corresponding EPS of 1.70, 2.01, and 2.59 yuan per share [6]. Financial Data Summary - The company's revenue for 2023 was 41.487 billion yuan, with a growth rate of 11.99%. The projected revenue for 2024 is 51.307 billion yuan, reflecting a growth rate of 23.67% [7]. - The net profit attributable to the parent company for 2023 was 4.789 billion yuan, with a growth rate of 56.42%. The forecast for 2024 is 5.721 billion yuan, indicating a growth rate of 19.45% [7]. - The company's EPS for 2023 was 1.42 yuan, with projections of 1.70 yuan for 2024 and 2.01 yuan for 2025 [7]. - The company's P/E ratio for 2023 is 11.98, expected to decrease to 10.03 in 2024 and further to 8.47 in 2025 [7].