2022 net profit increased by 65.63% year-on-year, optimistic about the company's long-term development, maintaining the "buy" rating company to release the 2022 results KuaiBao on February 27, 2023. According to the company's preliminary accounting data, the company achieved revenue of 1.597 billion yuan in 2022, an increase of 14.62% over the same period last year, a net profit of 418 million yuan, an increase of 65.63%, and a non-return net profit of 404 million yuan, an increase of 71.54% over the same period last year. Although the prices of raw materials such as maleic anhydride and butadiene continue to decline sharply, the company's product prices are under pressure, but the company still achieved high profit growth throughout the year. We believe that the downstream wind power and other areas may have higher growth in 2023, and the company will still be one of the most beneficial links in the industrial chain. We maintain the company's profit forecast and estimate that the return net profit from 2022 to 2024 is 4.18,5.02 and 663 million yuan respectively, and the corresponding EPS is 1.41,1.69,2.24 yuan per share, respectively. The current stock price corresponds to 20.8,17.4,13.1 times of PE from 2022 to 2024.

We are optimistic about the future development of the company and maintain its "buy" rating.

With the delivery of wind power in 2023, the company may be one of the most beneficial links in the wind power industry chain. according to the National Power Industry Statistics 2022 released by the State Energy Administration, China's wind power installed capacity increased by 37.6GW in 2022, a decline of 21% compared with the same period last year. According to the contents of the 2023 National Energy work Conference held on December 30, 2022, it is proposed that if the installed scale of wind power is about 430 million kilowatts in 2023, then the new installed capacity of wind power in 2023 needs to reach about 65GW. According to the statistics of daily wind power official account, from January to December 2022, the total scale of wind power projects in China is 103.3GW (excluding frame bidding), including sea wind 17.9GW and land wind 85.4GW. Wind power equipment shipments and installed capacity may exceed expectations in 2023. Under the background of large-scale wind turbine blades, the certainty of pultruded girder has become the mainstream process, and the demand for anhydride curing agent will be released. According to Baichuan Yingfu data, by February 2023, the prices of maleic anhydride and butadiene increased by 6.26% and 13.30%, respectively, and the cost end of anhydride rebounded, and anhydride prices are expected to be supported. We believe that wind power installation will have a high probability of high growth in 2023, the permeability of pultruded girders will also be further increased, and other downstream areas such as power insulation materials and coatings are expected to improve marginally. The 20,000 tons of methyl tetrahydrophthalic anhydride newly put into production by the company in 2022Q3 is expected to be the main increment of wind anhydride curing agent in the supply side before 2023Q4, and the raw material end also begins to stop falling and pick up. The company may be one of the most beneficial links in the wind power industry chain.

Risk tips: production capacity construction progress is not as expected, downstream application demand is not as expected, raw material prices fluctuate.