RSPC(SZ:002493) Guohai Securities·2024-05-15 09:30Investment Rating - The report maintains a "Buy" rating for the company [1][12][49] Core Insights - The company has shown a recovery in profitability year-on-year in Q1 2024, driven by new material projects that support growth [1][4][11] - The company signed a memorandum of understanding with Saudi Aramco, enhancing its overseas refinery layout and new material project development [10][12] - The company is focusing on high-end petrochemical industry chain development, with multiple new projects and facilities coming online [11][12] Financial Performance Summary - In Q1 2024, the company achieved revenue of 810.9 billion yuan, a year-on-year increase of 16.3%, but a quarter-on-quarter decrease of 5.8% [4][6] - The net profit attributable to shareholders was 5.5 billion yuan, marking a return to profitability compared to the previous year, but a decrease of 47.4% from the previous quarter [4][6] - The operating cash flow for Q1 2024 was 41.3 billion yuan [4][6] - The gross profit margin improved to 14.06%, up 9.70 percentage points year-on-year and 3.71 percentage points quarter-on-quarter [4][6] Revenue and Profit Forecast - The company is projected to generate revenues of 352.9 billion yuan, 404.4 billion yuan, and 465.0 billion yuan for the years 2024, 2025, and 2026 respectively [12][47] - The net profit attributable to shareholders is expected to be 4.9 billion yuan in 2024, 6.6 billion yuan in 2025, and 9.3 billion yuan in 2026, reflecting significant growth rates [12][47] Market Position and Strategy - The company is positioned as a leading player in the private refining sector, continuously enhancing its product value through new material projects [12][47] - The strategic partnership with Saudi Aramco is expected to bolster the company's international presence and technological capabilities in the chemical industry [10][12]