Zibo Qixiang Tengda Chemical (002408) 海通证券·2024-05-12 03:32Investment Rating - The report maintains an "Outperform the Market" investment rating for the company [19][21]. Core Views - The company is expected to benefit from improved product price differentials and is projected to achieve earnings per share (EPS) of 0.17, 0.56, and 0.95 for the years 2024 to 2026 respectively [21]. - The company reported a revenue of 26.918 billion yuan in 2023, a decrease of 9.7% year-on-year, and a net profit of -384 million yuan, reflecting a significant decline of 160.5% year-on-year [20]. - The company is expanding its C3 industrial chain and has completed the construction of several projects, including a 700,000-ton/year propane dehydrogenation project and a 300,000-ton/year propylene oxide project, which are expected to enhance its competitive position [24]. Financial Summary - The company’s revenue is projected to grow to 33.796 billion yuan in 2024, 37.550 billion yuan in 2025, and 39.780 billion yuan in 2026 [4][6]. - The net profit is expected to recover to 490 million yuan in 2024, 1.580 billion yuan in 2025, and 2.713 billion yuan in 2026 [4][6]. - The gross margin is anticipated to improve from 6.1% in 2023 to 13.9% by 2026 [4][6]. Business Development - The company is investing in new materials, particularly focusing on the methyl methacrylate (MMA) project, which is expected to have significant market potential due to the growing demand for optical-grade PMMA [17]. - The catalyst business is also being expanded, with the construction of a 360-ton/year maleic anhydride catalyst, which aims to reduce production costs and support new product development [16].