HYPC(000703) 国海证券·2024-11-11 09:42Investment Rating - Buy (Maintained) [1] Core Views - Hengyi Petrochemical's Q3 2024 revenue was RMB 30.051 billion, a year-on-year decrease of RMB 7.162 billion and a quarter-on-quarter decrease of RMB 3.058 billion [2] - Net profit attributable to shareholders in Q3 2024 was RMB -199 million, a year-on-year decrease of RMB 330 million and a quarter-on-quarter decrease of RMB 216 million [2] - Gross profit in Q3 2024 was RMB 1.160 billion, a year-on-year decrease of RMB 672 million but a quarter-on-quarter increase of RMB 52 million [2] - The company's sales/management/R&D/financial expenses in Q3 2024 were RMB 50 million, RMB 267 million, RMB 160 million, and RMB 961 million respectively, with varying year-on-year and quarter-on-quarter changes [2] - Hengyi Petrochemical's Brunei Phase I project has achieved full-load production and smooth sales, with profitability expected to improve steadily [2] - The company is advancing its Qinzhou nylon project, which is expected to enhance its market share in the nylon sector and strengthen its integrated industrial chain [5] Financial Performance - Revenue for 2024E, 2025E, and 2026E is projected to be RMB 127.166 billion, RMB 142.079 billion, and RMB 147.063 billion respectively [6] - Net profit attributable to shareholders for 2024E, 2025E, and 2026E is forecasted to be RMB 552 million, RMB 1.149 billion, and RMB 1.511 billion respectively [6] - The company's P/E ratios for 2024E, 2025E, and 2026E are estimated at 43.65x, 20.97x, and 15.94x respectively [6] Industry and Market Position - Hengyi Petrochemical is a leading private multinational enterprise in the petrochemical and chemical fiber industry, with a total polymerization capacity of 11.615 million tons [2] - The company is focusing on differentiated fiber products and promoting environmentally friendly products like "Yitaikang" [2] - The ASEAN region's high GDP growth in 2024 is expected to drive demand for petrochemical products, benefiting the company [2] Share Repurchase and Future Plans - The company announced a share repurchase plan with a total amount between RMB 125 million and RMB 250 million, to be used for employee stock ownership or equity incentive plans [3] - The Qinzhou nylon project is in the peak equipment installation phase, which is expected to further enhance the company's performance and market position [5]