Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company has experienced significant growth in performance, benefiting from the improved market conditions for refrigerants [1] - The revenue for 2024 reached 24.462 billion yuan, a year-on-year increase of 18.43%, while the net profit attributable to shareholders was 1.960 billion yuan, up 107.69% year-on-year [1] - In Q4 2024, the company achieved a revenue of 6.556 billion yuan, representing a year-on-year increase of 41.21% and a quarter-on-quarter increase of 12.52% [1] Summary by Sections Revenue Growth - The main drivers of revenue growth in 2024 were the expansion of the consolidated reporting scope, increased production, and higher prices. The three main business segments—refrigerants, petrochemical materials, and basic chemical products—continued to contribute significantly [2] - Refrigerant production for the year was 591,400 tons, a year-on-year increase of 21.12%, with external sales of 353,000 tons, up 22.61% [2] - Petrochemical materials production was 607,100 tons, a year-on-year increase of 36.14%, with external sales of 522,100 tons, up 45.70% [2] - Basic chemical products and others produced 3.0402 million tons, a year-on-year increase of 12.90%, with external sales of 1.7852 million tons, up 12.03% [2] Cost Management - The company reduced its sales expense ratio primarily due to decreased leasing costs. The sales/management/financial/R&D expense ratios changed by -0.18%/+0.06%/+0.28%/-0.54% year-on-year [3] Strategic Initiatives - The company is accelerating the production of new projects and enhancing its global HFCs quota advantage to establish a leading position in the refrigerant market. It has successfully completed the acquisition of Feiyuan Chemical, integrating its annual production capacity of 80,000 tons of HFCs and related facilities [4] - The company has also added new products in fine chemicals, significantly increasing the business proportion of fluorinated refrigerants and fine chemical products [4] - The annual production capacity of 85,700 tons of organic alcohol has been successfully put into operation, steadily increasing the domestic market share of organic alcohol products [4] Profit Forecast - The company’s profit forecast has been adjusted upwards, with expected net profits attributable to shareholders for 2025-2027 projected at 3.714 billion, 4.919 billion, and 6.050 billion yuan, respectively. The current stock price corresponds to P/E ratios of 18.5, 14.0, and 11.4 times for the respective years [9]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company reported a significant increase in net profit for Q1 2025, driven by the high demand for refrigerants, with a year-on-year growth of 161% [1] - The refrigerant market is expected to remain strong, supported by demand from downstream sectors such as air conditioning and automotive [4] - The company is projected to achieve net profits of 41 billion, 53 billion, and 61 billion RMB for the years 2025 to 2027, respectively, indicating a robust growth trajectory [5] Revenue and Profitability - In Q1 2025, the company achieved total revenue of 5.8 billion RMB, a year-on-year increase of 6% [1] - The company's gross profit margin improved to 28.4%, reflecting a year-on-year increase of 13.7 percentage points [3] - The earnings per share (EPS) for 2025 is estimated at 1.52 RMB, with a projected growth in EPS for the following years [5] Market Performance - The average price of refrigerants has increased, with R22, R32, R125, and R134a prices rising by 9%, 13%, 7%, and 11% respectively since the beginning of the year [4] - The company's market capitalization is approximately 68.47 billion RMB, with a target price set at 31.92 RMB [9] Segment Performance - The refrigerant segment saw a year-on-year sales increase of 4%, despite a seasonal decline in Q1 [2] - The fluoropolymer segment faced temporary pressure, with a year-on-year sales decline of 7% [2] - The basic chemical products segment benefited from improved caustic soda prices, leading to a revenue increase of 7% year-on-year [3]