The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 7.306 billion yuan, -17.84% year-on-year; realized net profit of 383 million yuan, or -67.49% year-on-year. 2024Q1 achieved revenue of 1,948 billion yuan, +10.98% year over year, and realized net profit of 29 million yuan, or -58.92% year-on-year.
The construction of the project is progressing smoothly and is expected to contribute to increased performance. In 2023, the company's carbon three carbon four comprehensive utilization project was fully accelerated. Completed installations such as PDH and ammonia synthesis were successfully put into operation, producing qualified products; methylamine, butane isomers, and sewage pretreatment devices were successfully handed over; the PO/MTBE project completed 90% model review, and the overall progress was in line with the three-level schedule. The first VLGC ship docked successfully, and the Haifeng-Binhua 110kV line was successfully connected to traffic. The park's integrated sewage treatment and reuse project was transferred to the production and operation stage. The construction of the 50,000-ton waterway, breakwater barrier, and pipe gallery support south extension project all made great progress.
Focusing on scientific research and innovation, hydrofluoric acid and hydrogen chloride projects have made great progress. In 2023, the company implemented 3 pilot projects for ECH, phenol, and distillation separation platforms using the hydrogen peroxide method, carried out 20 small test projects such as polyisobutene and electronic-grade hydrogen fluoride, as well as research on 21 products such as downstream isobutene, propylene oxide, and downstream fluorochlorobromide, and organized and implemented 35 patent applications. At the same time. The key technology development and industrialization application project for ultra-high purity electronic grade hydrofluoric acid for advanced semiconductor processes was selected for the 2023 Shandong Provincial Key R&D Program. It was the first time that Binhua hosted a major provincial scientific and technological innovation project; the electronic grade hydrogen chloride deep purification research project was selected as a major basic research project of the Shandong Natural Science Foundation of China in 2023, and is the first provincial basic research project hosted by the first enterprise in Binzhou. The two projects sought a total of 11.2 million yuan in financial support.
Investment advice. We expect the company's net profit to be 4.20, 557 million yuan, and 935 million yuan, respectively, and EPS of 0.20, 0.27, and 0.45 yuan, respectively. Referring to comparable company valuation levels, we will give it 1.2-1.3 times PB in 2024, corresponding to a reasonable value range of 6.90-7.47 yuan, maintaining a “superior to the market” rating.
Risk warning. Product prices fluctuated greatly, downstream demand fell short of expectations, and the progress of projects under construction fell short of expectations.