Huafon Spandex(SZ:002064) KAIYUAN SECURITIES·2024-04-24 15:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6] Core Views - The company has shown a quarter-on-quarter revenue growth in Q1 2024, driven by the expansion of spandex and adipic acid production capacity [6][7] - The company achieved a revenue of 66.57 billion yuan in Q1 2024, representing a year-on-year increase of 7.51% and a quarter-on-quarter increase of 24.28% in net profit [6][7] - Future production capacity for spandex is expected to reach 525,000 tons, further solidifying the company's leading position in the industry [8] Financial Performance Summary - In 2023, the company reported a total revenue of 262.98 billion yuan, a year-on-year increase of 1.60%, with a net profit of 24.78 billion yuan, down 12.85% year-on-year [6][9] - For Q1 2024, the company reported a net profit of 6.83 billion yuan, up 8.24% year-on-year and 24.28% quarter-on-quarter [6][7] - The average price of adipic acid in Q1 2024 was 9,780 yuan/ton, up 7.33% quarter-on-quarter, while the average price of spandex was 29,787 yuan/ton, down 5.24% quarter-on-quarter [7][9] Production Capacity and Market Position - The company has 100,000 tons of spandex and 400,000 tons of adipic acid production capacity that began trial production in 2023 [6][8] - The company is positioned as a low-cost leader in the spandex market, with plans for further capacity expansion expected to benefit from a potential recovery in market conditions [8][9]