BAOFENG ENERGY(SH:600989) Southwest Securities·2024-03-25 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance met expectations, with a revenue of 29.14 billion yuan in 2023, 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 10.3% [2] - The price spread of main products has improved, and with the expectation of further cost reductions, profitability is anticipated to continue improving [2] - The company is expanding its production capacity significantly, with new projects expected to release profit space [2] - A stock incentive plan has been implemented to boost confidence in future performance [2] - Earnings per share (EPS) forecasts for 2024-2026 are 1.16 yuan, 1.66 yuan, and 1.83 yuan, respectively, with corresponding dynamic PE ratios of 14x, 9x, and 9x [2][3] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 29.14 billion yuan and a net profit of 5.651 billion yuan [2] - The revenue growth rate for 2024 is projected at 30.77%, with net profit expected to grow by 50.19% [3] Production Capacity Expansion - The company has completed the construction of several key projects, including a coal-to-olefins project and an EVA production facility, which will significantly increase production capacity [2] - The olefins division's capacity is expected to grow by 75% following the commissioning of new projects [2] Stock Incentive Plan - A stock incentive plan was announced to motivate key personnel, aiming for substantial revenue growth over the next few years [2] Earnings Forecast - The company forecasts significant revenue growth from 38.1 billion yuan in 2024 to 62.62 billion yuan in 2026, with net profit increasing from 8.487 billion yuan to 13.449 billion yuan during the same period [3][9]