STL(SZ:002648) EBSCN·2024-04-23 10:02Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The C2 industry chain profitability continues to improve, with a significant year-on-year increase in Q1 performance for the company [1] - In Q1 2024, the company achieved operating revenue of 8.8 billion yuan, a year-on-year decrease of 6.95% (adjusted) and a quarter-on-quarter decrease of 16.98% [1] - The net profit attributable to shareholders reached 1.023 billion yuan, a year-on-year increase of 46.55% (adjusted) and a quarter-on-quarter decrease of 26.73% [1] - The domestic PDH price spread improved significantly, reaching 474 yuan/ton, up 156 yuan/ton year-on-year and 90 yuan/ton quarter-on-quarter [1] - The company is advancing its α-olefin comprehensive utilization project, with the first phase entering the environmental assessment public notice stage [1] Financial Summary - The company’s projected net profits for 2024, 2025, and 2026 are 5.964 billion yuan (down 9%), 6.975 billion yuan (down 13%), and 8.898 billion yuan respectively, with corresponding EPS of 1.77 yuan, 2.07 yuan, and 2.64 yuan [2] - Revenue is expected to grow from 50.194 billion yuan in 2024 to 65.759 billion yuan in 2026, with growth rates of 20.99% and 17.39% respectively [3] - The company’s net profit margin is projected to improve from 11.9% in 2024 to 13.5% in 2026 [4] - The company’s P/E ratio is expected to decrease from 11 in 2024 to 7 in 2026, indicating a potentially attractive valuation [4]