STL(SZ:002648) Guoxin Securities·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for Satellite Chemical (002648.SZ) [3][7]. Core Views - In 2023, the company achieved a significant year-on-year growth in net profit attributable to shareholders, increasing by 54.7% to 4.79 billion yuan, driven by a 12.0% rise in operating revenue to 41.49 billion yuan [4][6]. - The company has made substantial investments in R&D, with expenses reaching 1.63 billion yuan, a 31.1% increase from the previous year, and successfully launched a 1,000 tons/year α-olefin industrial trial device [4][6]. - The report highlights the positive impact of declining raw material prices on profitability, with the company benefiting from lower ethane prices, which averaged 22.8 cents per gallon in Q4 2023, down 22.5% from the previous quarter [5][6]. Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 41.49 billion yuan, a 12.0% increase year-on-year, and a net profit of 4.79 billion yuan, reflecting a 54.7% growth [4][5]. - The fourth quarter of 2023 saw operating revenue of 10.61 billion yuan, up 14.4% year-on-year, and a staggering net profit of 1.40 billion yuan, marking a 2693.9% increase year-on-year [4][5]. Segment Performance - Revenue from functional chemicals, polymer materials, and new energy materials reached 21.29 billion yuan (+8.7%), 11.92 billion yuan (+61.9%), and 460 million yuan (+100.0%) respectively, with corresponding gross margins of 15.6% (-5.9 pcts), 29.6% (+6.5 pcts), and 36.8% (-1.5 pcts) [5][6]. Future Growth Prospects - The company has several new projects underway, including a 400,000 tons/year polystyrene facility and a 100,000 tons/year ethanolamine facility, which are expected to enhance future growth [6][7]. - A significant investment of 25.7 billion yuan is planned for a new α-olefin comprehensive utilization high-end material industrial park in Lianyungang, with construction expected to start in 2024 [6][7]. Earnings Forecast - The report projects net profits for 2024, 2025, and 2026 to be 6.25 billion yuan, 7.74 billion yuan, and 8.87 billion yuan respectively, with diluted EPS of 1.86 yuan, 2.30 yuan, and 2.63 yuan [7][9].