Gelonghui, May 15 | Guotai Junan Research Report indicates that Dongfang Shenghong (000301.SZ)'s 2023 and 2024Q1 results are under pressure, and it is expected that future performance will recover as downstream recovers. The company plans to strategically introduce Saudi Aramco and is expected to achieve a strong alliance. The target price was lowered to 11.76 yuan (previously 13.05 yuan), maintaining the “gain” rating. The bank is optimistic about the gradual recovery of refining and chemical profits, and there is plenty of room for improvement. The average price of crude oil in 2023 was about 83 US dollars/barrel, down 17% year on year. Benefiting from lower crude oil costs on the cost side and the recovery of downstream refined oil products and chemicals, the gross profit margin of the company's new petrochemical and chemical materials in 2023 was 12.40%, +4.45% year on year.