XINJIANG TIANYE(SH:600075)2024-03-25 16:00Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company reported a revenue of 11.465 billion yuan in 2023, a year-on-year decrease of 19.61%, and a net loss attributable to shareholders of 775 million yuan, a year-on-year increase of 185.75% [1] - In Q4 2023, the company achieved a revenue of 2.838 billion yuan, a year-on-year increase of 3.76%, and a net profit of 6 million yuan, marking a year-on-year increase of 103.82% [1] - The recovery in the chlor-alkali sector is expected to improve profitability, with a focus on the integration of Tianchen Chemical to enhance production capacity [1] Summary by Sections Financial Performance - In 2023, the company's main products saw varying sales volumes: PVC resin at 1.0211 million tons (+69.82%), special PVC resin at 85,900 tons (-3.27%), paste resin at 93,500 tons (-2.91%), and caustic soda at 736,400 tons (+49.19%) [1] - The average selling prices for these products decreased, with PVC resin at 5,222 yuan/ton (-17.28%) and caustic soda at 2,848 yuan/ton (-9.49%) [1] - Q4 2023 saw significant sales volume increases for PVC resin (+109.51%) and caustic soda (+101.93%) compared to the previous year [1] Strategic Developments - The acquisition of Tianchen Chemical is expected to enhance the company's chlor-alkali scale advantages and promote a green upgrade of the traditional PVC resin industry [1] - The company plans to utilize convertible bonds for projects in the green and efficient resin circular economy, with expected contributions to future earnings starting in mid-2024 [1] Profit Forecasts - The company’s net profit forecasts for 2024 and 2025 have been adjusted to 421 million yuan and 733 million yuan, respectively, with a new forecast for 2026 at 1.082 billion yuan [1] - The current market capitalization corresponds to a price-to-book ratio of 0.73 for 2024, with an estimated upside potential of approximately 5.5% [1]