HLGF(600346) 华安证券·2024-04-09 16:00Investment Rating - Buy (Maintained) [1] Core Views - Hengli Petrochemical's 2023 annual report shows significant improvement in performance, with revenue reaching CNY 234.866 billion, a year-on-year increase of 5.62%, and net profit attributable to shareholders of CNY 6.905 billion, a year-on-year increase of 197.83% [2] - The company's profitability indicators have significantly improved, with a gross profit margin of 11.25%, a net profit margin of 2.94%, and ROE of 11.51% [3] - The company's new material projects are progressing well, with several key projects achieving breakthroughs and contributing to future growth [6] - The company has a high dividend payout ratio of 56.07%, with a dividend yield of 3.80% based on the closing price on April 9, 2024 [7] Financial Performance - In 2023, Hengli Petrochemical achieved revenue of CNY 234.866 billion, a year-on-year increase of 5.62%, and net profit attributable to shareholders of CNY 6.905 billion, a year-on-year increase of 197.83% [2] - The company's gross profit margin increased by 3.04 percentage points to 11.25%, and the net profit margin increased by 1.90 percentage points to 2.94% [3] - The company's ROE increased by 7.12 percentage points to 11.51% [3] - The company's sales expense ratio, management expense ratio, and financial expense ratio were 0.13%, 0.85%, and 2.28%, respectively, with overall good cost control [3] New Material Projects - Hengli Petrochemical has made significant progress in new material projects, with several key projects achieving breakthroughs and contributing to future growth [6] - The company's new material projects include high-performance special industrial yarn, green multifunctional textile materials, and lithium battery separator projects, with several projects expected to be fully operational by 2024 [6] - The company's PTA production capacity has reached 17 million tons, ranking first in the world [6] Dividend Policy - Hengli Petrochemical has a high dividend payout ratio of 56.07%, with a dividend yield of 3.80% based on the closing price on April 9, 2024 [7] - The company plans to distribute a cash dividend of CNY 0.55 per share, totaling CNY 3.872 billion [7] Investment Recommendation - The report maintains a "Buy" rating for Hengli Petrochemical, with expected net profit attributable to shareholders of CNY 10.099 billion, CNY 14.034 billion, and CNY 14.672 billion for 2024, 2025, and 2026, respectively [8] - The company's EPS is expected to be CNY 1.43, CNY 1.99, and CNY 2.08 for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 10.09X, 7.26X, and 6.94X [8]