Huafon Spandex(002064) 兴业证券·2024-05-17 06:32Investment Rating - The investment rating for the company is maintained at "Buy" [1][4][10] Core Views - The company reported a revenue of 26.298 billion yuan in 2023, a year-on-year increase of 1.6%, while the net profit attributable to shareholders was 2.478 billion yuan, a decline of 12.85% [4][7] - The company has shown signs of recovery in its core product profitability since Q4 2023, with improvements in the price spread of its main products [4][8] - The company is positioned as a leading enterprise in the fields of spandex, adipic acid, and polyurethane raw materials in China, with significant scale advantages and a strong cost control capability [4][10] Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 6.617 billion yuan, a year-on-year increase of 11.33%, while the net profit was 550 million yuan, up 28.45% year-on-year [4][7] - For Q1 2024, the company reported a revenue of 6.657 billion yuan, a year-on-year increase of 7.51%, and a net profit of 683 million yuan, up 8.24% year-on-year [4][7] Product and Market Insights - The profitability of spandex products has been gradually recovering, and the price spread of adipic acid has also improved in Q1 2024 [4][8] - The company has new production capacities for spandex and adipic acid that are expected to contribute to revenue growth in the coming year [4][10] Future Outlook - The company is actively pursuing integration within the spandex industry chain, with significant projects underway that are expected to enhance raw material control and reduce production costs [4][9] - The forecast for EPS is adjusted to 0.61 yuan for 2024, 0.72 yuan for 2025, and a new estimate of 0.81 yuan for 2026, indicating a positive growth trajectory [4][10]