DHE(SZ:002221)2024-06-05 11:00Investment Rating - The report assigns an 'Outperform' rating to the company, indicating that the stock's total return over the next 12-18 months is expected to exceed the return of its relevant broad market benchmark [3][22]. Core Insights - The company has officially commenced its 10,000-ton carbon fiber project, which is divided into two phases. The first phase involves the construction of two spinning lines and two carbonization lines, with an investment of approximately RMB 1.6 billion, aiming for an annual production capacity of 4,800 tons of high-performance carbon fiber. The second phase will further enhance capacity to 8,000 tons of carbon fiber and 23,840 tons of polyacrylonitrile powder, with a total investment of around RMB 2.9 billion [1]. - The carbon fiber project utilizes advanced technologies such as aqueous phase polymerization and dry-jet wet spinning, ensuring stable production and cost-effectiveness, which enhances its competitiveness in both domestic and international markets [57][53]. - The company is focusing on developing downstream applications of carbon fiber, targeting industries such as aerospace, military, automotive, and new building materials, marking a strategic shift from propane dehydrogenation to high-performance polymer composite materials [16]. Financial Summary - The forecasted net profit attributable to shareholders for 2024-2026 is projected to be RMB 281 million, RMB 511 million, and RMB 1,075 million, with corresponding EPS of RMB 0.18, RMB 0.32, and RMB 0.67 [3]. - The company's revenue is expected to show a slight decline in 2023, followed by a recovery in subsequent years, with projected revenues of RMB 27,123 million in 2023 and RMB 33,004 million by 2026 [54]. - The gross margin is anticipated to improve from 5.6% in 2023 to 8.8% in 2026, reflecting operational efficiency and cost management [54].