DHE(SZ:002221) EBSCN·2024-04-23 01:01Investment Rating - The report maintains a "Buy" rating for Donghua Energy (002221.SZ) with a current price of 9.02 CNY [4][9]. Core Insights - The company's performance in 2023 significantly improved due to the decline in propane prices, with a notable increase in net profit by 255% year-on-year [4][9]. - The Maoming project is progressing steadily, which is expected to enhance the company's leading position in the PDH (Propane Dehydrogenation) sector [6][7]. Financial Performance - In 2023, Donghua Energy achieved a revenue of 27.12 billion CNY, a decrease of 7% year-on-year, while the net profit attributable to shareholders was 151 million CNY, an increase of 255% [4][10]. - The average prices for propane, propylene, and oil-based polypropylene in 2023 were 5,261 CNY/ton, 7,027 CNY/ton, and 8,650 CNY/ton, reflecting year-on-year declines of 14%, 10%, and 1% respectively [4][6]. - The company’s projected net profits for 2024, 2025, and 2026 are 291 million CNY, 540 million CNY, and 1.01 billion CNY respectively, with significant growth rates anticipated [9][10]. Strategic Developments - Donghua Energy is actively expanding its hydrogen energy industry chain, enhancing its capabilities in hydrogen gas consumption and production [6][7]. - The company has invested in a high-temperature gas-cooled reactor nuclear power station in Maoming, aiming to develop green hydrogen production technologies [6][7]. Production Capacity - As of Q1 2024, Donghua Energy operates three major production bases in Zhangjiagang, Ningbo, and Maoming, with a total capacity of 2.4 million tons for PDH and 200,000 tons for polypropylene [7][9]. - The Maoming project, which includes a 600,000-ton PDH and a 400,000-ton polypropylene facility, is expected to contribute significantly to the company's future earnings [7][9].