North Huajin Chemical Industries (SZ:000059) 光大证券研究·2025-04-19 13:17Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, primarily due to falling oil prices and a scheduled maintenance shutdown affecting production volumes [2][3]. Financial Performance - In 2024, the company achieved operating revenue of 34.6 billion yuan, a year-on-year decrease of 25% - The net profit attributable to shareholders was -2.8 billion yuan, down from -2.865 billion yuan year-on-year - In Q4 alone, the company recorded operating revenue of 10.1 billion yuan, a year-on-year decline of 23% but a quarter-on-quarter increase of 203% - The net profit for Q4 was -906 million yuan, a decrease of 1.37 billion yuan year-on-year, but an improvement of 240 million yuan quarter-on-quarter [2]. Sales Volume and Market Conditions - The average price of ICE Brent crude oil in 2024 was $79.93 per barrel, reflecting a 3% year-on-year decline - The sales volume of petrochemical products was 4.19 million tons, down 25% year-on-year - Asphalt product sales were 1.65 million tons, a decrease of 12% year-on-year - Fertilizer product sales were 1.1 million tons, down 13% year-on-year - The decline in sales volume was attributed to increased inventory losses due to falling oil prices and a major maintenance shutdown of production facilities [3]. Strategic Developments - The company has partnered with Saudi Aramco and Panjin Xincheng Group to develop a large-scale integrated refining and chemical project in Northeast China - The total investment for this project is 83.7 billion yuan, with a crude oil processing capacity of 300,000 barrels per day (equivalent to 15 million tons per year) - The project includes 32 sets of process units for ethylene and PX, expected to be fully operational by 2026 - Saudi Aramco will supply up to 210,000 barrels per day (approximately 10 million tons per year) of crude oil for the project - The company is expected to enhance its competitiveness in the petrochemical and fine chemical sectors through this strategic partnership [4].