Investment Rating - The report maintains an "Outperform" rating for the company [4][11][12] Core Views - The petrochemical business is under significant pressure, leading to a downward revision of the company's EPS for 2025-2026 to 4.20/5.45/6.07 RMB, with a target price adjustment to 67.70 RMB based on a 16.12x PE for 2025 [4][11][12] - The company experienced a decline in Q4 performance, with total revenue for 2024 at 182.07 billion RMB, up 3.83% YoY, while net profit attributable to shareholders was 13.03 billion RMB, down 22.49% YoY [12][13] - The company is entering a "Year of Transformation" in 2025, focusing on management reforms to enhance organizational vitality and market expansion [12][13] Financial Summary - Total revenue projections are as follows: 175.36 billion RMB for 2023, 182.07 billion RMB for 2024, 200.01 billion RMB for 2025, 223.95 billion RMB for 2026, and 244.42 billion RMB for 2027, with respective growth rates of 5.9%, 3.8%, 9.9%, 12.0%, and 9.1% [3][5] - Net profit attributable to shareholders is projected to be 16.82 billion RMB for 2023, 13.03 billion RMB for 2024, 13.20 billion RMB for 2025, 17.10 billion RMB for 2026, and 19.07 billion RMB for 2027, reflecting a decline of 22.5% in 2024 [3][5] - The company's gross profit margin for petrochemicals was 3.52% in 2024, with a further decline to 2.31% in the second half of the year [12][13] Business Developments - The company has multiple projects nearing completion, including a second TDI project in Fujian expected to start in May 2025, increasing total TDI capacity to 1.44 million tons/year [13] - A 250,000 tons/year LDPE unit in Yantai is set to commence operations in early 2025, establishing a foundation in high-end polyolefins [13] - New materials projects, including MS and XLPE, are progressing and expected to start in 2025 [13]

Investment Rating - The report maintains an "Outperform" rating for the company [4][11]. Core Views - The petrochemical business is under significant pressure, leading to a downward revision of the company's EPS for 2025-2026 to 4.20, 5.45, and 6.07 RMB respectively. The target price is adjusted to 67.70 RMB based on a PE of 16.12x for 2025 [4][11]. - The company's Q4 performance showed a decline both year-on-year and quarter-on-quarter, primarily due to impairments, with a notable drop in revenue and net profit [12][4]. - The company is entering a "Year of Transformation" in 2025, focusing on management reforms to enhance organizational vitality and market expansion [12][13]. Financial Summary - In 2024, the company achieved total revenue of 182.07 billion RMB, a year-on-year increase of 3.83%, while net profit attributable to shareholders was 13.03 billion RMB, down 22.49% year-on-year [12]. - The Q4 revenue was 34.47 billion RMB, down 19.49% year-on-year and 31.80% quarter-on-quarter, with net profit attributable to shareholders at 1.94 billion RMB, down 52.83% year-on-year [12]. - The company's 2025 Q1 performance improved quarter-on-quarter, with revenue of 43.07 billion RMB, down 6.70% year-on-year but up 24.96% quarter-on-quarter [12]. Business Developments - The company has a diverse business layout, including polyurethane, petrochemicals, fine chemicals, and new materials. Key projects include a new TDI project in Fujian and a LDPE unit in Yantai, both expected to enhance production capacity significantly [13][12].

Investment Rating - Maintain 'Outperform' rating for the company, indicating expected performance above the market benchmark over the next 12-18 months [4][9]. Core Views - Despite challenges in glyphosate and silicone sectors, the company achieved stable growth in 2024, supported by its growth and resource sectors [4][9]. - The earnings forecasts for 2025-2026 have been lowered due to the lack of recovery in agrochemical and silicone sectors, with new forecasts for 2027 introduced [4][9]. - The target price is maintained at 24.34 RMB, corresponding to a PE ratio of 14.5x for 2025, which is above the average of 11.5x for comparable companies, reflecting optimism about the dual main business elasticity [4][9]. Financial Summary - 2024 revenue is projected at 28.40 billion RMB, a slight increase of 0.41% year-on-year, with net profit attributable to shareholders at 1.60 billion RMB, up 14.33% [4][9]. - The fourth quarter of 2024 saw revenue of 6.35 billion RMB, a year-on-year increase of 1.70%, but a quarter-on-quarter decrease of 26.60%, with net profit of 287 million RMB, down 35.82% year-on-year and down 43.63% quarter-on-quarter [4][9]. - The company plans to focus on phosphate expansion and downstream fine products capacity in 2025, aiming to complete several key projects within the year [4][9]. Financial Projections - EPS for 2025-2027 is projected to be 1.68, 1.93, and 2.19 RMB respectively, with previous estimates for 2025-2026 being 2.01 and 2.25 RMB [4][9]. - The company aims to complete various projects, including 40,000 tons/year ultra-high purity electronic chemicals and electronic-grade hydrogen peroxide expansion projects [4][9]. - Significant profit increases are expected from phosphate and specialty chemicals sectors, demonstrating resilience from deep industry chain cultivation [4][9].

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The report highlights a 36.38% year-on-year decline in the company's net profit attributable to the parent company for 2024, driven by a decrease in product prices and increased convertible bond interest expenses [7]. - The company is expected to benefit from its overseas expansion and new material development, which are anticipated to drive growth in the coming years [7]. Financial Performance and Forecast - The company reported a revenue of 34.31 billion yuan in 2024, a slight decrease of 0.69% year-on-year [7]. - The projected revenues for 2025, 2026, and 2027 are 39.56 billion yuan, 43.59 billion yuan, and 47.16 billion yuan, respectively, indicating a growth rate of 15.3%, 10.2%, and 8.2% [6][12]. - The net profit for 2024 is forecasted at 1.92 billion yuan, with a significant recovery expected in 2025 at 3.06 billion yuan, reflecting a year-on-year growth of 59.5% [6][12]. - The company's earnings per share (EPS) are projected to be 0.43 yuan in 2024, increasing to 0.68 yuan in 2025 and further to 0.84 yuan in 2027 [6][12]. Product and Market Analysis - The report indicates that the company's high-performance rubber additives and multifunctional rubber additives had revenue changes of -5.76% and 6.34% respectively in 2024, with sales volumes increasing by 4.06% and 4.96% [7]. - The company is actively expanding its overseas production capacity, including a new rubber additive production base in Thailand [7]. - The acquisition of Bomi Technology is aimed at enhancing the company's competitiveness in the electronic chemicals sector, with a focus on polyimide materials [7]. Valuation and Peer Comparison - The report suggests a reasonable valuation range for the company at 12.24 to 13.60 yuan based on a price-to-earnings (PE) ratio of 18-20 times for 2025 [7]. - The company’s competitive position is strengthened by its significant market share in key products, such as over 60% in the global market for anti-scorching agents [7].