四季度业绩环比提升，内蒙项目助力成长

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's annual performance met expectations, with a significant quarter-on-quarter profit increase in Q4. In 2023, the company achieved revenue of 29.136 billion yuan, a year-on-year increase of 2.48%, and a net profit attributable to shareholders of 5.651 billion yuan, a year-on-year decrease of 10.34%. In Q4 alone, revenue reached 8.735 billion yuan, a year-on-year increase of 25.77% and a quarter-on-quarter increase of 19.48%, with a net profit of 1.760 billion yuan, a year-on-year increase of 89.25% and a quarter-on-quarter increase of 7.70% [1][2] - The company's growth in 2023 was supported by multiple project launches, particularly the Inner Mongolia olefin project, which is expected to enhance growth potential. The company completed the Ningdong Phase III coal-to-olefin and C2-C5 and mixed hydrocarbon utilization projects, adding methanol capacity of 1.5 million tons/year and polyethylene and polypropylene capacity of 900,000 tons/year. Additionally, a 200,000-ton styrene project was launched in September 2023, and a 250,000-ton/year EVA facility is set to begin trial production in February 2024 [1][2] Summary by Sections Financial Performance - In 2023, the company reported a revenue of 29.136 billion yuan, with a year-on-year growth of 2.5%. The operating profit was 6.786 billion yuan, down 12.1% year-on-year, and the net profit attributable to shareholders was 5.651 billion yuan, a decrease of 10.3% year-on-year. The earnings per share (EPS) for 2023 was 0.77 yuan [5][8] - The projected EPS for 2024, 2025, and 2026 is 1.11 yuan, 1.77 yuan, and 1.93 yuan respectively, with significant growth expected in 2024 [2][5] Project Developments - The company has initiated several projects that are expected to contribute to future growth, including the Inner Mongolia coal-to-olefin project, which is anticipated to start production in Q4 2024. This project will significantly increase the company's olefin production capacity [1][2] Valuation and Price Target - The target price for the company's stock is set at 17.32 yuan, based on a price-to-earnings (PE) ratio of 15.6 times for 2024, reflecting a premium due to expected higher growth rates compared to peers [2][4]