HYPC(SZ:000703) Xinda Securities·2024-04-28 14:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance [1][2]. Core Insights - The company's core business is expected to continue its favorable cycle, with a projected increase in profitability driven by overseas refining and polyester segments [1][2]. - The report highlights a significant recovery in net profit for 2024, with estimates of 1.94 billion yuan, representing a growth rate of 345.3% compared to the previous year [2][3]. - The overall revenue for 2024 is projected to be 15.34 billion yuan, reflecting a year-on-year growth of 12.7% [3]. Financial Performance Summary - In 2023, the company reported total revenue of 136.15 billion yuan, a decline of 10.5% year-on-year, while net profit was 435 million yuan, a significant recovery from a loss of 1.08 billion yuan in 2022 [3]. - The gross profit margin is expected to improve from 3.8% in 2023 to 4.0% in 2024, indicating better cost management and pricing strategies [3]. - Earnings per share (EPS) are projected to rise from 0.13 yuan in 2023 to 0.53 yuan in 2024, with further increases to 0.77 yuan and 0.92 yuan in 2025 and 2026, respectively [2][3]. Industry Outlook - The report anticipates a contraction in new production capacity for PX in the domestic market, with only 5 million tons expected from 2024 to 2026, which may support the overall industry’s profitability [2]. - The polyester sector is also expected to see limited new capacity additions, with a net increase of less than 1 million tons in 2024, indicating a slowdown in production growth [2]. - The overall market conditions for the company's overseas refining and polyester segments are expected to remain favorable, contributing to improved financial performance [2].