HLGF(SH:600346) Guohai Securities·2024-04-11 16:00Investment Rating - The report maintains a "Buy" rating for Hengli Petrochemical (600346) [2] Core Views - Hengli Petrochemical's 2023 annual report shows significant improvement in profitability, with a total revenue of 234.79 billion yuan, a year-on-year increase of 5.6%, and a net profit attributable to shareholders of 6.905 billion yuan, up 197.8% year-on-year [3][4] - The company emphasizes shareholder returns with a cash dividend payout ratio of 56.07%, amounting to 3.872 billion yuan in dividends [8] - The new materials projects are entering a concentrated production phase, indicating strong growth potential [9] Summary by Sections Financial Performance - In 2023, Hengli Petrochemical achieved a net profit of 6.905 billion yuan, with a significant increase in non-recurring net profit of 60 billion yuan, reflecting a 473.7% year-on-year growth [3] - The fourth quarter of 2023 saw a revenue of 61.68 billion yuan, a year-on-year increase of 18.7%, but a decline in net profit to 1.2 billion yuan, down 48.1% year-on-year [3][4] Revenue Breakdown - Revenue from refining products decreased by 3.0% to 119.96 billion yuan, while PTA products saw a revenue increase of 28.2% to 72.6 billion yuan [4] - New materials generated 34.1 billion yuan in revenue, marking a 17.1% increase [4] Market Position and Strategy - The company has maintained a cost advantage through integrated operations in oil, coal, and chemicals, which has contributed to improved profitability despite market challenges [4] - The report highlights the company's focus on optimizing operations, reducing debt, and enhancing dividends as it approaches the end of its current investment cycle [8] Future Outlook - Revenue projections for 2024-2026 are set at 256.895 billion yuan, 265.678 billion yuan, and 274.678 billion yuan, respectively, with net profits expected to reach 9.897 billion yuan, 12.023 billion yuan, and 13.809 billion yuan [10][42] - The report anticipates a continued upward trend in profitability driven by multiple project developments [42]