bohui petrochemlcal(SZ:300839)2024-05-10 11:30Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of RMB 11.20 based on a projected 3.6x price-to-book ratio for 2024 [4]. Core Insights - The company reported a revenue of RMB 2.78 billion in 2023, a decrease of 6.32% year-over-year, and a net loss of RMB 203 million, which is a significant increase in loss by 233.72% year-over-year. In Q1 2024, revenue was RMB 793 million, reflecting a substantial increase of 90.69% year-over-year, with a net loss of RMB 99 million, a 284.55% decrease in loss year-over-year. The decline in 2023 was primarily due to a tax notice from Ningbo's tax authority regarding the taxation of 'heavy aromatics derivatives' [1]. - The company is focusing on expanding its processing capacity and investing in a new project for high-end chemicals with an annual capacity of 1.6 million tons to enhance its supply chain resilience and competitiveness [2]. - A three-year shareholder dividend plan has been outlined, indicating that from 2024 to 2026, dividends will be distributed based on the company's maturity and capital expenditure status, aiming to provide stable return expectations for investors [3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of RMB 2.78 billion, down 6.32% year-over-year, with a net loss of RMB 203 million, a 233.72% increase in loss year-over-year. For Q1 2024, revenue was RMB 793 million, up 90.69% year-over-year, with a net loss of RMB 99 million, a 284.55% decrease in loss year-over-year [1]. Business Strategy - The company is advancing its industrial upgrades with nearly one million tons of annual processing capacity and is investing in a new materials and high-end chemicals project to strengthen its integrated advantages [2]. Shareholder Returns - The company has established a transparent three-year dividend plan, with conditions for cash distribution based on its operational maturity and capital expenditure needs [3]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are RMB 0.14, RMB 0.53, and RMB 0.57, respectively, indicating expected growth as new capacities come online [4].