ZANYU TECHNOLOGY(SZ:002637) Guohai Securities·2024-04-23 13:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved profitability in 2023 with a net profit of 0.88 billion, recovering from a loss of 0.7 billion in the previous year [1] - The first quarter of 2024 is expected to show significant growth in net profit, projected between 0.48 to 0.58 billion, representing a year-on-year increase of 112.20% to 156.40% [7] - The company's revenue for 2023 was 96.12 billion, a decrease of 14.5% year-on-year, but the gross profit margin improved to 6.2%, up by 1.1 percentage points [1][16] Financial Performance - In 2023, the company reported a net profit of 0.88 billion, with a gross profit of 5.94 billion, and operating cash flow of 5.43 billion, an increase of 98.2% year-on-year [1][16] - The revenue breakdown for 2023 shows that sales from oil chemicals, surfactants, and other businesses were 59.36 billion, 33.98 billion, and 1.77 billion respectively, with year-on-year changes of -19.35%, -3.29%, and -17.83% [4] - The company expects revenues of 123.14 billion, 131.86 billion, and 142.06 billion for 2024, 2025, and 2026 respectively, with corresponding net profits of 3.31 billion, 4.27 billion, and 5.01 billion [11][92] Market Position and Industry Context - The company is positioned in the rapidly growing Chinese market for synthetic detergents, which has an estimated production scale of 14 million tons [8] - The company has established large-scale integrated production bases for surfactants and daily chemical products, with a total OEM/ODM processing capacity of 1.1 million tons [40] - The stability of palm oil prices in 2023 contributed to the company's improved performance, as the macroeconomic factors affecting commodity prices have normalized [15][16]