JINNENG(SH:603113) KAIYUAN SECURITIES·2024-04-30 07:30Investment Rating - The investment rating for the company is "Buy" (maintained) [9][11]. Core Views - The company reported a revenue of 3.39 billion yuan in Q1 2024, a year-on-year decrease of 1.61%, with a net profit attributable to shareholders of -24 million yuan, an improvement from -139 million yuan in the same period last year [11]. - The report highlights significant reductions in the costs of major raw materials, which may lead to improved profitability in the olefin and carbon black segments, while the coal tar and fine chemicals segments may continue to face pressure due to substantial price declines [11]. - The company maintains its profit forecasts for 2024-2026, expecting net profits of 340 million, 560 million, and 750 million yuan, representing year-on-year growth of 143.6%, 66.6%, and 34.3% respectively [11]. Financial Summary - Q1 2024 olefin production reached 179,000 tons, up 8.7% year-on-year, with sales volume increasing by 25.3% to 181,000 tons, despite a 5.4% drop in selling price [11]. - The carbon black segment produced 147,000 tons in Q1 2024, a 12.9% increase year-on-year, with sales volume rising by 26.6%, although the selling price fell by 17.5% [11]. - The coal tar segment saw production of 347,000 tons, a slight increase of 1.1% year-on-year, but sales volume decreased by 1.5%, with a significant price drop of 19.4% [11]. - The fine chemicals segment reported a sales volume of 600 tons, up 19.45% year-on-year, but faced a 28.43% decline in selling price [11]. Production Capacity and Future Outlook - The Qingdao Phase I olefin project is fully operational, and Phase II is in the commissioning stage, which is expected to enhance capacity and efficiency [11]. - The company is advancing its new materials and hydrogen energy projects at the Qingdao base, with the second phase of the olefin project expected to double production capacity from 90,000 tons/year to 180,000 tons/year [11]. - The report anticipates that with economic recovery, olefin demand will improve, and the price differentials for the company's main products may recover, leading to a potential performance rebound [11].