HUALU-HENGSHENG(SH:600426) 光大证券研究·2025-04-06 13:19Core Viewpoint - The company reported a significant increase in total revenue and net profit for 2024, indicating strong operational performance despite challenges in product pricing and market conditions [2][3]. Group 1: Financial Performance - In 2024, the company achieved total revenue of 34.2 billion yuan, a year-on-year increase of 25.6%, and a net profit attributable to shareholders of 3.9 billion yuan, up 9.1% year-on-year [2]. - In Q4 2024, the company recorded total revenue of 9.05 billion yuan, a year-on-year increase of 14.3% and a quarter-on-quarter increase of 10.3%. The net profit for the quarter was 850 million yuan, reflecting a year-on-year increase of 31.6% and a quarter-on-quarter increase of 3.5% [2]. Group 2: Market Conditions - The price differentials for key products such as urea, acetic acid, and DMF have declined significantly in Q4 2024, with urea price differential at 900 yuan/ton, down 575 yuan/ton year-on-year [3]. - The average market price of domestic thermal coal (Q5500) in Q4 2024 was 826 yuan/ton, representing a 14% decrease year-on-year and a 3% decrease quarter-on-quarter [3]. Group 3: Project Developments - The company’s Jingzhou project has contributed to revenue growth, compensating for price declines through increased volume [3]. - The company announced the commissioning of gas power platform and syngas comprehensive utilization projects, which are expected to produce 1 million tons of urea and 100,000 tons of acetic acid annually, enhancing core competitiveness [5]. - Ongoing projects, including the second phase of the Jingzhou base and new material projects, are expected to further increase production capacity and profitability [5][6].