Luxi Chemical(000830) 山西证券·2024-05-07 06:30Investment Rating - The report assigns a "Buy-B" rating for the company, indicating a positive outlook for its stock performance in the near term [1][2]. Core Views - The company has shown a significant improvement in its Q1 2024 performance, with revenue reaching 6.752 billion yuan, a year-on-year increase of 2.61%, and a net profit of 568 million yuan, up 76.26% year-on-year [1][2]. - The overall market conditions are favorable, coupled with operational improvements, leading to better-than-expected earnings [1][2]. - The company is expected to benefit from the recovery in downstream demand and the gradual ramp-up of ongoing projects, projecting revenues of 30.2 billion yuan in 2024, 31.9 billion yuan in 2025, and 32.1 billion yuan in 2026 [2][3]. Financial Performance Summary - In 2023, the company reported a revenue of 25.358 billion yuan, a decrease of 16.5% year-on-year, and a net profit of 819 million yuan, down 74.1% year-on-year [3]. - The gross margin for 2023 was 13.4%, with an expected recovery to 17.1% in 2024 [3]. - Earnings per share (EPS) for 2023 was 0.43 yuan, with projections of 1.02 yuan in 2024, 1.17 yuan in 2025, and 1.31 yuan in 2026 [2][3]. Market Position and Strategy - The company is positioned as a leading comprehensive chemical enterprise in China, with a diverse product portfolio including chemical new materials, basic chemicals, fertilizers, and equipment manufacturing [1][2]. - The company aims to develop an integrated industrial base for new chemical materials and fine chemicals, focusing on low-carbon raw materials, integrated supply chains, and high-end products [1][2].