HYPC(000703) 东吴证券·2024-01-31 16:00Investment Rating - The report maintains a "Buy" rating for Hengyi Petrochemical [1] Core Views - The company is expected to achieve a net profit attributable to shareholders of 395 to 415 million yuan in 2023, marking a turnaround from losses in the previous year [2][3] - The long filament profit center is recovering, while aromatics maintain a high level of prosperity [3] - The company has launched multiple employee stock ownership plans, reflecting confidence in long-term development [3] Financial Forecasts and Valuation - Total revenue is projected to increase from 152,050 million yuan in 2022 to 158,094 million yuan in 2023, representing a 4% year-on-year growth [2] - The net profit attributable to shareholders is forecasted to rise from a loss of 1,080 million yuan in 2022 to a profit of 412 million yuan in 2023, a 138% increase [2] - Earnings per share are expected to improve from -0.29 yuan in 2022 to 0.11 yuan in 2023 [2] - The price-to-earnings ratio (P/E) is projected to be 55.43 for 2023, decreasing to 20.19 in 2024 and 13.47 in 2025 [2][4] Key Events - The company announced its sixth employee stock ownership plan, aiming to raise up to 800 million yuan, with part of the funds allocated for stock repurchase [3] - The report highlights an increase in the price differentials for POY, FDY, and DTY, indicating improved profitability in the long filament sector [3] - The report notes a significant increase in PTA production capacity in 2023, which is expected to impact the overall market dynamics [3] Market Data - The closing price of the stock is reported at 6.23 yuan, with a market capitalization of approximately 22,841 million yuan [5] - The company has a price-to-book ratio of 0.96, indicating potential undervaluation [5] Financial Metrics - The company's total assets are projected to grow from 111,965 million yuan in 2022 to 117,105 million yuan in 2023 [7] - The debt-to-asset ratio is expected to remain around 72.42% [6][8] - Operating cash flow is forecasted to increase significantly from 2,706 million yuan in 2022 to 8,302 million yuan in 2023 [8]