Group 1: Company Overview and Strategy - As of May 9, 2025, the number of shareholders is 16,944 [2] - The company aims to become a global leader in chemical manufacturing services by focusing on surfactants, fatty chemicals, and personal care OEM/ODM [2][3] - Future development plans include enhancing technological innovation and extending the industrial chain, particularly in Indonesia and Malaysia [3] Group 2: Financial Performance and Projections - In 2024, exports accounted for 36.55% of total sales, targeting markets such as the Belt and Road Initiative, RCEP, and Africa Free Trade Area [3] - Non-operating income from government subsidies in 2024 is projected to be CNY 3,500 million [3] - The company anticipates a significant increase in net profit for 2024, despite a decline in cash flow due to rising raw material prices [3][4] Group 3: Market Trends and Challenges - The domestic market for anionic surfactants is expected to grow by 10.5% and 14.0% in 2024, with an annual growth rate of over 8% for the surfactant market [4] - The company faces challenges from intensified competition and economic pressures, impacting profit margins compared to 2021 [7][10] - The palm oil market is currently at a reasonable level, with future price movements driven by supply and demand fundamentals [8] Group 4: Operational Efficiency and Cost Management - The company is enhancing supply chain efficiency and inventory management to reduce costs [6][10] - Automation initiatives are in place to improve production efficiency and reduce operational costs [10] - The company is committed to maintaining a minimum cash dividend of 10% of distributable profits annually [5][6] Group 5: Shareholder Engagement and Market Position - The company is considering increasing its dividend payout to enhance shareholder value [6] - As a leading player in the surfactant and fatty chemical sectors, the company holds over 30% market share in both categories [10][11] - The company is focused on maintaining independence and compliance with regulatory standards amid concerns about major shareholders [11]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's performance in 2024 and Q1 2025 shows significant improvement driven by the oil and daily chemical sectors, with a notable increase in revenue and net profit [2][3] - The company is positioned well for growth due to its production capacity expansion and the rising profitability of its Dukuda base in Indonesia, benefiting from higher palm oil prices [3][9] - The daily chemical business is gradually maturing, with expectations for improved profitability as production capacity utilization and product structure optimization are prioritized [8][9] Summary by Sections Financial Performance - In 2024, the company achieved revenue of 10.792 billion yuan, a year-on-year increase of 12.27%, and a net profit of 135 million yuan, up 53.99% [2][11] - For Q4 2024, revenue reached 3.228 billion yuan, a year-on-year increase of 37.23%, while Q1 2025 saw revenue of 3.429 billion yuan, up 40.50% year-on-year [1][2] Business Segments - The surface active agents segment generated revenue of 4.501 billion yuan in 2024, up 32.43% year-on-year, while the oil chemical segment reported revenue of 6.121 billion yuan, a 3.10% increase [2] - The company is actively expanding its Dukuda base, which has advantages in palm oil procurement and production costs, leading to improved profitability [3] Future Outlook - The company forecasts net profits of 413 million yuan, 552 million yuan, and 663 million yuan for 2025, 2026, and 2027 respectively, indicating strong growth potential [9][11] - The expected earnings per share (EPS) for the same years are projected to be 0.88 yuan, 1.17 yuan, and 1.41 yuan, with corresponding price-to-earnings (P/E) ratios of 10.72, 8.01, and 6.67 [9][11]