业绩持续改善，提高分红比率加强股东回报

Investment Rating - Buy rating maintained for Hengli Petrochemical (600346 SH) [4] Core Views - Hengli Petrochemical's 2023 annual report shows significant improvement in performance with full-year revenue of RMB 234 791 billion, a 5 61% YoY increase, and net profit attributable to parent company of RMB 6 905 billion, a 197 83% YoY surge [1][4] - The company's Q4 2023 revenue reached RMB 61 678 billion, up 18 69% YoY, with net profit attributable to parent company of RMB 1 204 billion, a 131 95% YoY increase [1][4] - The company is expected to achieve net profits attributable to parent company of RMB 10 19 billion, RMB 12 23 billion, and RMB 14 11 billion for 2024-2026, with corresponding P/E ratios of 10 2X, 8 5X, and 7 4X based on the closing price on April 10, 2024 [5] Business Highlights - Aromatics and refined oil products maintain high prosperity, benefiting from strong domestic travel demand and overseas seasonal peak demand [4] - The company is a unique "oil, coal, chemical" integrated petrochemical enterprise with world-class production clusters, significantly reducing operational and logistics costs [4] - Capital expenditure reduction and increased dividend payout ratio strengthen shareholder returns, with 2023 cash dividends accounting for 56 07% of net profit attributable to parent company [5] Project Updates - 1 6 million tons/year high-performance resin and new materials project expected to achieve full production in Q2 2024 [5] - Functional film projects in Suzhou Fenhu base have been put into production, with Nantong base projects expected to start production in H2 2024 [5] - Lithium battery separator projects in Yingkou and Nantong bases are progressing, with full production expected in H1 2024 [5] Financial Performance - 2023 operating cash flow reached RMB 23 536 billion, a 9 32% YoY decrease [1][4] - Gross margin improved to 11% in 2023, with expected further improvement to 14% by 2026 [8] - Net profit margin increased from 2 9% in 2023 to an expected 5 0% in 2026 [8] - Asset-liability ratio decreased from 77 0% in 2023 to an expected 65 7% in 2026 [8]