RSPC(SZ:002493)2024-05-28 04:00Investment Rating - The report assigns an "OUTPERFORM" rating to the company with a target price of RMB 15.05 [2][4]. Core Views - The company turned profitable post-2Q23, reporting a revenue of RMB 325.11 billion in 2023, a year-on-year increase of 12.46%, and a net profit attributable to shareholders of RMB 1.16 billion, down 65.33% year-on-year [3][14]. - The main profit contributor in 2023 was Zhejiang Petrochemical, processing approximately 44 million tons of crude oil and generating a net profit of RMB 1.37 billion, contributing about RMB 0.70 billion to the company's net profit [3][14]. - The company is accelerating its new materials layout, leveraging its 40 million tons/year refining and chemical integration project, and targeting new energy and high-end materials [9][16]. - Saudi Aramco was introduced as a strategic investor, holding about 10% of the company's equity, enhancing cooperation in various areas including crude oil procurement and technology sharing [10][17]. Financial Summary - In 2023, the company achieved a revenue of RMB 325.11 billion, with a net profit of RMB 1.16 billion, and proposed a cash dividend of RMB 1.0 per 10 shares [3][6]. - For 1Q24, the company reported a revenue of RMB 81.09 billion, up 16.30% year-on-year, with a significant turnaround in net profit to RMB 0.55 billion [6][14]. - The earnings per share (EPS) forecast for 2024-2026 is RMB 0.43, RMB 0.63, and RMB 0.82 respectively, with a book value per share (BPS) of RMB 4.59 in 2024 [4][17]. Business Segments - The chemical fiber sector's profits rebounded in 2023, while the PTA sector faced pressure, with four PTA plants collectively incurring a loss of RMB 0.30 billion [8][15]. - The company is focusing on five major industry chains: polyester, engineering plastics, new energy, high-end polyolefins, and special rubber, becoming a key producer in Asia [9][16]. Strategic Developments - The partnership with Saudi Aramco includes discussions on equity cooperation and capacity expansion at the Jubail refinery and CICC Petrochemical [10][17]. - The company is expanding its product line in new energy materials and high-end synthetic materials, with ongoing projects to enhance production capacity [9][16].