Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - The company is anticipated to recover from its profit bottom, with a long-term positive outlook on its MDI competitive advantage, which is expected to provide excess profits [2][3]. - The company reported a revenue of 182.07 billion yuan for FY 2024, a year-on-year increase of 3.83%, while the net profit attributable to shareholders decreased by 22.49% to 13.03 billion yuan [2][4]. - The report highlights the company's strategic moves to diversify raw materials and enhance production capabilities, which are expected to bolster its long-term profitability [2][3]. Financial Performance Summary - For FY 2024, the company achieved total revenue of 182,069 million yuan, with a year-on-year growth rate of 3.8%. The net profit attributable to shareholders was 13,033 million yuan, reflecting a decline of 22.5% [4]. - The projected revenues for 2025, 2026, and 2027 are 197,523 million yuan, 215,057 million yuan, and 229,194 million yuan, respectively, with expected growth rates of 8.5%, 8.9%, and 6.6% [4]. - The report forecasts a recovery in net profit for 2025, with an expected increase of 11.4% to 14,518 million yuan, followed by further growth in subsequent years [4]. Market Position and Competitive Advantage - The company has a significant cost advantage over overseas competitors in the MDI market, which is expected to enhance its profitability as older production capacities exit the market [2][3]. - The report notes that the company has completed a 400,000-ton capacity expansion at its Fujian base in 2024, positioning it to benefit from the anticipated recovery in MDI demand [2][3]. Strategic Initiatives - The company is actively pursuing raw material diversification to mitigate the impact of fluctuating energy prices and enhance its risk resilience [2][3]. - The transition of its ethylene project from propane to ethane is expected to be completed by the end of 2025, which will further strengthen its supply chain [2][3]. Valuation and Price Target - The report sets a target price of 69.30 yuan for the company's stock, based on a projected price-to-earnings ratio of 15 times for 2025 [4][2]. - The current stock price is noted at 58.29 yuan, indicating potential upside based on the target valuation [4].