HYPC(SZ:000703) Haitong Securities·2024-05-10 08:33Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6][19] Core Views - The company achieved a significant year-on-year increase in net profit attributable to shareholders of 1087% in Q1 2024, with operating revenue reaching 31.656 billion yuan, up 11.54% year-on-year [6] - The gross profit margin improved to 4.95%, reflecting a year-on-year increase of 0.71 percentage points and a quarter-on-quarter increase of 1.56 percentage points [6] - The company has a balanced layout across the entire industry chain, with crude oil processing capacity of 8 million tons per year and various chemical product capacities [6][12] - Key projects are progressing steadily, including the integrated project of 120,000 tons/year of caprolactam-nylon and the second phase of the Brunei refinery [6] - Earnings forecasts for 2024-2026 are projected at EPS of 0.27, 0.38, and 0.46 yuan respectively, with a reasonable value range of 7.65-9.04 yuan based on comparable company valuation levels [6] Summary by Sections Financial Performance - In Q1 2024, the company reported a net profit of 414 million yuan, marking a quarter-on-quarter increase of 80.52% [6] - The gross profit for Q1 2024 was 1.567 billion yuan, an increase of 362 million yuan year-on-year [6] - The company’s total revenue for 2023 is projected at 136.148 billion yuan, with a slight increase expected in 2024 [7][15] Capacity and Production - The company has a total crude oil processing capacity of 8 million tons/year and various chemical production capacities, including PTA at 21.5 million tons/year and polyester fiber at 7.515 million tons/year [12][6] - The company is advancing key projects, including a PTA and functional materials project in Hainan, which is expected to enter trial production [6] Valuation Metrics - The projected P/E ratios for 2024-2026 are 28-33 times, with a P/B ratio of 1.1-1.3 times for 2024 [6][13] - The company’s net asset return is expected to improve from 1.7% in 2023 to 6.1% by 2026 [7][15]