Event: The company released its 2023 annual report. In 2023, the company achieved operating income of 27.123 billion yuan, a year-on-year decrease of 7.11%, and achieved net profit attributable to shareholders of listed companies of 151 million yuan, an increase of 255.22% over the previous year.
The Maoming project will soon be put into operation to contribute to performance. The company's Maoming base currently has 1 PDH unit with a production capacity of 600,000 tons/year, 1 PP unit with a production capacity of 400,000 tons/year, 1 ammonia synthesis plant with a production capacity of 200,000 tons/year, and supporting facilities. In September 2023, the PDH unit and PP plant were put into trial production. The 200,000 tons/year ammonia synthesis plant is currently in the trial production preparation stage and is about to enter trial production. In 2024, the company will officially put the device into operation and peak production capacity as soon as possible, contributing growth points to the company's 2024 business performance.
Actively promote carbon fiber research and development, and project construction will commence in due course in 2024. In 2023, the company focused on new productivity with carbon fiber as the core, and cooperated with the carbon fiber research team of Shandong University to build a laboratory to develop high-quality, low-cost carbon fiber with independent intellectual property rights. At the same time, the company actively promotes research and development of downstream application products with carbon fiber as the core and polyolefin as the base material, covering four major industries, including aerospace and military, low-altitude flight, lightweight automobiles and rail transit, and new building materials. According to the company's plan, construction of the first phase of the carbon fiber project is expected to commence in due course in 2024.
The plan uses high-temperature air-cooled reactors as the power source to achieve green zero-carbon development. The company joined hands with China Nuclear Industry Group Co., Ltd. to build a high-temperature air-cooled reactor nuclear power plant in Maoming. Production costs are greatly reduced through the gradual use of high-temperature steam. Achieve green, low-carbon, and sustainable development goals by consuming green electricity and producing hydrogen from nuclear energy. According to the company's plan, it is expected that the approval of high-temperature air-cooled reactor nuclear power projects will continue to be promoted in 2024.
Profit forecasting and investment ratings. We expect Donghua Energy's net profit from 2024 to 2026 to be 281 million yuan, 511 million yuan, and 1,075 million yuan respectively, EPS 0.18, 0.32, 0.68 yuan, and 6.94 yuan for BPS in 2024. Referring to the valuation level of comparable companies, they were given 1.8-1.9 times PB in 2023. The corresponding reasonable value range was 12.49-13.19 yuan, and the corresponding PE was 69-73 times, maintaining the “superior to the market” rating.
Risk warning. Construction of the project fell short of expectations; product prices fluctuated greatly.