Key points of investment:

Event: The company released its 2024 semi-annual report. Achieved revenue of 31.272 billion yuan, +10.96% YoY, -6.05% month-on-month; realized net profit to mother of 0.6047 billion yuan, +26.17% YoY and -0.37% month-on-month.

Overall revenue is on the rise, and PTA sales volume has declined. 2024H1, the company sold 2.3268 million tons of POY, +8.73%; FDY sold 0.6994 million tons, +2.85% year over year; DTY sold 0.3615 million tons, +2.18% year on year; staple fiber sales 0.6227 million tons, +25.75% year on year; PTA sales volume of 0.2265 million tons, or -4.55% year on year. In terms of price. POY price was 6885.30 yuan/ton, +1.99%; FDY price was 7793.80 yuan/ton, +3.01%; DTY price was 8772.99 yuan/ton, +4.80%; staple fiber price was 6554.31 yuan/ton, +1.88% year over year; PTA price was 5211.51 yuan/ton, +2.13% year over year. In terms of revenue. POY revenue was 16.021 billion yuan, +10.90%; FDY revenue was 5.451 billion yuan, +5.95% year over year; DTY revenue was 3.172 billion yuan, +7.07% year over year; staple fiber revenue was 4.082 billion yuan, +28.12% year over year; PTA revenue was 1.18 billion yuan, -2.53% year over year.

Respond positively to environmental policies and take additional measures to reduce carbon emissions. 2024H1. In order to meet the requirements of the national energy sustainability strategy, the company actively takes measures to reduce carbon emissions. Currently, the company has set up supporting photovoltaic power generation systems in the existing plant, and the benefits are obvious. The company uses polyester devices and PTA devices to generate electricity from waste heat, and the benefits are commendable. The company cooperated fully with Hangzhou Weitian Technology Co., Ltd. to install a tailor-made EnerSizePlatform energy efficiency monitoring system, combined with on-site factory analysis by compressed air system experts to reduce electricity waste.

Profit forecasting and investment ratings. We expect the company's 2024-2026 EPS to be 1.04 yuan, 1.55 yuan, 1.72 yuan, and the 2024 BPS 11.51 yuan, respectively. According to 2024 EPS and 12-14 times PE, corresponding to a reasonable value range of 12.48-14.56 yuan (corresponding to 1.1-1.3 times PB in 2024), maintaining a “superior to market” investment rating.

Risk warning: Project construction progress falls short of expectations; product prices fluctuate greatly.

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