STL(SZ:002648) Guohai Securities·2024-04-24 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][9] Core Views - The company reported a significant year-on-year increase in net profit for Q1 2024, driven by low raw material prices and new projects that open up growth opportunities [4][8] - The company is expected to benefit from the ongoing development of its C3 industrial chain and the α-olefin comprehensive utilization project, which will enhance its production capabilities and product offerings [8][9] Summary by Sections Q1 Performance - In Q1 2024, the company achieved revenue of 88.05 billion yuan, a decrease of 6.95% year-on-year and a decrease of 16.98% quarter-on-quarter; net profit attributable to shareholders was 10.23 billion yuan, an increase of 46.55% year-on-year but a decrease of 26.73% quarter-on-quarter [3][4] - The company's return on equity (ROE) was 3.93%, up 0.83 percentage points year-on-year but down 1.64 percentage points quarter-on-quarter [3] - The gross profit margin was 21.66%, an increase of 5.39 percentage points year-on-year, while the net profit margin was 11.59%, an increase of 4.10 percentage points year-on-year [3] Market Data - As of April 23, 2024, the company's stock price was 18.25 yuan, with a market capitalization of approximately 61.48 billion yuan [4][9] - The average price of ethane in Q1 2024 was 141 USD/ton, down 21.62% year-on-year; the average price of polyethylene was 9,419 yuan/ton, up 1.67% year-on-year [4][8] Future Outlook - The company is projected to achieve revenues of 511 billion yuan, 583 billion yuan, and 727 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 62.03 billion yuan, 75.00 billion yuan, and 102.83 billion yuan [9][11] - The company is expected to maintain a strong growth trajectory, supported by its cost advantages in the C2 business and the expansion of its product lines into high-end materials [9][11]