HYPC(SZ:000703) Soochow Securities·2024-04-29 23:01Investment Rating - The report maintains a "Buy" rating for Hengyi Petrochemical [1] Core Views - The company reported a Q1 2024 revenue of 31.7 billion yuan, a year-on-year increase of 12%, and a net profit attributable to shareholders of 410 million yuan, a year-on-year increase of 1087% [3] - The technical upgrades completed in the Brunei refinery have led to a recovery in profitability, with improved product structure and processing margins [3] - The polyester segment is expected to see stable operations, with a positive outlook for long filament supply and demand in 2024 [3][4] Financial Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 is 1.1 billion, 1.7 billion, and 1.9 billion yuan respectively, with corresponding P/E ratios of 24.0, 16.0, and 14.2 times [4] - The company has implemented stock repurchase and employee stock ownership plans, reflecting confidence in long-term development [4] Market Data - The closing price is 7.04 yuan, with a market capitalization of approximately 25.81 billion yuan [6] - The company has a price-to-book ratio of 1.06 and a debt-to-asset ratio of 70.54% [7]