Core view: The company is a leading domestic LPG carbon four-deep processing enterprise. It has outstanding industrial chain integration & technological leadership, and is located in Daya Bay and has an adequate supply of raw materials. The company's long-term technological innovation drives the continuous reduction of energy consumption, unit consumption and production costs of various products, and enhances the resilience of continuous and steady growth in performance. The company leads the maleic anhydride process industry. The first set of 150,000 tons is the largest single plant in the country. The cost advantage is remarkable. Continued technical improvements and capacity expansion will improve competitiveness in the future. The company relies on maleic anhydride technology to extend the industrial chain and expand growth space by arranging BDO/GBL/PTMEG/DMS/PBS, etc.

(1) The company is deeply involved in the field of LPG carbon four deep processing, with outstanding alpha properties. The company focuses on the integrated circular economy concept and has C4 full component processing capabilities, and can utilize isobutene/isobutane/butylene/butylene butane to produce MTBE/isobutane/butyl acetate/maleic anhydride products; the company's long-term technological innovation drives the continuous reduction in energy consumption, unit consumption and production costs of various products, enhancing the resilience of continuous and steady growth in performance. The company is located in Huizhou Daya Bay petrochemical area, close to CNOOC Huizhou, CNOOC Huizhou, CNOOC Shell, etc., and has advantages in raw material supply and product transportation.

(2) MTBE and isooctane have benefited from the boom in the oil market and the implementation of the gasoline country's 6b policy. Consumption tax levied on isooctane supports MTBE demand in the short term.

(3) The company leads the maleic anhydride process industry. The first set of 150,000 tons is the largest single plant in the country. The cost advantage is remarkable. Continued technical improvement and capacity expansion will improve competitiveness in the future. At the same time, the company relies on the advantages of maleic anhydride raw materials to actively extend the industrial chain and expand growth space by arranging BDO/GBL/PTMEG/DMS/PBS.

Profit forecast and rating: The net profit for 2023-2025 is expected to be 5.59, 8.11, and 1,237 billion yuan, and the EPS is 1.75, 2.53, and 3.86 yuan, maintaining the “buy” rating.