HBYH(000422) 海通国际证券·2025-04-03 14:03Investment Rating - The report maintains an "Outperform" rating for Hubei Yihua Chemical Industry, with a target price of Rmb 17.85, representing an 8% upside from the current price of Rmb 13.00 [2][11]. Core Insights - The recurring net profit for 2024 decreased by 10.58% year-on-year, while the net profit attributable to the parent company increased by 44.32% [7][11]. - The company plans to acquire 100% equity of Yichang Xinfa, which will increase its stake in Xinjiang Yihua to 75%, enhancing future earnings potential [10][11]. - The company benefits from rising prices of pentaerythritol, with significant increases in market prices observed [9]. Financial Performance Summary - In 2024, the company achieved operating revenue of Rmb 16.964 billion, a slight decrease of 0.48% year-on-year, with a gross profit margin of 13.74%, up 1.08 percentage points [7][8]. - The net profit forecast for 2025-2027 is Rmb 1.1 billion, Rmb 1.378 billion, and Rmb 1.579 billion respectively, with a projected P/E ratio of 17.5 for 2025 [11][11]. - The company plans to distribute a dividend of Rmb 0.2 per share, totaling Rmb 216.5 million, with a payout ratio of 33.18% [7][11]. Product Performance Breakdown - Urea revenue in 2024 was Rmb 2.773 billion, down 13.08% year-on-year, with a gross margin of 19.98% [8]. - Other chlor-alkali products generated Rmb 1.534 billion in revenue, a decrease of 10.18%, but with a sales volume increase of 31.61% [8]. - Polyvinyl chloride (PVC) revenue was Rmb 4.130 billion, down 8.59%, while diammonium phosphate (DAP) revenue increased by 6.87% to Rmb 4.879 billion [8].