STL(SZ:002648) Donghai Securities·2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved a revenue of 41.487 billion yuan in 2023, a year-on-year increase of 12.00%, and a net profit attributable to shareholders of 4.789 billion yuan, up 54.71% year-on-year [7] - The company benefits from significant advantages in raw material costs, with the average price of ethane in the US at approximately $182.4 per ton in 2023, down 48.79% year-on-year, and a further decline to about $142.65 per ton in early 2024 [7] - The company has completed the construction of several production facilities, enhancing its competitiveness in high-performance materials and new energy materials [7] - The company plans to invest 10 billion yuan in R&D over the next five years, focusing on high-performance catalysts and new materials [8] - The forecasted net profits for 2024, 2025, and 2026 are 5.850 billion yuan, 6.924 billion yuan, and 9.023 billion yuan respectively, with corresponding EPS of 1.74, 2.06, and 2.68 [8] Summary by Sections Financial Performance - In 2023, the company reported a net profit of 4.789 billion yuan, with a year-on-year growth of 56.42% [9] - The gross profit margin for 2023 was 19.84%, with an expected increase to 20.29% in 2024 [9] - The company’s operating cash flow for 2023 was 7.996 billion yuan, reflecting a year-on-year increase of 35.80% [7] Production and Capacity - The company has established production capacities for various chemicals, including 600,000 tons of styrene and 400,000 tons of polystyrene, enhancing its production capabilities [7] - The acquisition of Jiangsu Jiahong New Materials Co., Ltd. added 1.35 million tons of hydrogen peroxide and 400,000 tons of propylene oxide production capacity [7] Research and Development - The company increased its R&D expenditure to 1.626 billion yuan in 2023, a 31.05% increase year-on-year [8] - Key projects include the successful commissioning of a pilot plant for α-olefins and the completion of the industrial process package for a 100,000-ton α-olefins facility [8] Market Outlook - The company is expected to see significant improvements in its functional chemicals business, with the Lianyungang Petrochemical Phase III project set to further enhance growth opportunities [8]