一体化布局构筑成本优势，新业务稳步推进

Investment Rating - The investment rating for the company is "Accumulate" [1][3] Core Views - The company reported a 48.5% year-on-year decline in net profit for 2023, with total revenue of RMB 6.778 billion, down 16.91% from the previous year. The net profit attributable to shareholders was RMB 446 million, a decrease of 48.5% [3][5] - Despite the decline in overall performance, the sales volume of EVA particles increased by 13% year-on-year, reaching 160,200 tons in 2023. The revenue from EVA particles was RMB 2.024 billion, down 28.62% year-on-year, with a gross margin of 40.95%, a decrease of 10.10 percentage points [3][5] - The company is expected to benefit from a stabilization in EVA particle prices, which may lead to a recovery in profitability [3][5] - The company has a current EVA particle production capacity of 150,000 tons per year, with an additional 200,000 tons under construction, expected to be operational by 2025. A new 90,000 tons/year VA facility has successfully started operations, ensuring stable supply for EVA production [3][5] - The company is also expanding into new business areas, including UHMWPE and lithium battery materials, with several projects expected to come online in 2024 [3][5] Financial Summary - In 2023, the company's main revenue was RMB 6,778 million, with a growth rate of -16.9%. The EBITDA was RMB 960 million, and the net profit attributable to shareholders was RMB 446 million, reflecting a growth rate of -48.5% [4][6] - The forecasted earnings per share (EPS) for 2024-2026 are adjusted to RMB 0.51, 0.57, and 0.65, respectively, with corresponding price-to-earnings ratios of 32.3, 29.0, and 25.1 [3][4] - The company’s gross margin for 2023 was 16.16%, down from 20.22% in 2022, indicating a decline in profitability [5][7]