Zhejiang Yonghe Refrigerant (605020) 国海证券·2024-04-30 06:30Investment Rating - The report maintains a "Buy" rating for the company [8][83]. Core Views - The report highlights the growth potential of the company's fluoropolymer products driven by rising refrigerant prices [15][26]. - The company achieved a revenue of 4.369 billion yuan in 2023, representing a year-on-year increase of 14.86%, while the net profit attributable to shareholders decreased by 38.81% to 184 million yuan [12][44]. - The company is expected to see revenue growth in the coming years, with projections of 5.3 billion yuan in 2024, 6.017 billion yuan in 2025, and 6.539 billion yuan in 2026 [83]. Financial Performance - In Q4 2023, the company reported a revenue of 1.14 billion yuan, a year-on-year increase of 5.23%, but a significant decline in net profit by 70.12% to 22 million yuan [12][44]. - For Q1 2024, the company achieved a revenue of 1.012 billion yuan, up 7.84% year-on-year, with a net profit of 37 million yuan, reflecting a 27.38% increase [12][49]. - The company's gross profit margin for 2023 was 14.63%, down 3.83 percentage points year-on-year, while the net profit margin was 4.21%, down 3.69 percentage points [12][44]. Production and Capacity - The company has a fluorocarbon chemical production capacity of 190,000 tons, with a significant allocation of 55,200 tons for HFCs in 2024, placing it among the industry leaders [16][26]. - The production volume of fluorinated polymer materials increased by 113.91% year-on-year in 2023, reaching 38,700 tons [14][29]. Valuation Metrics - The report provides a forecast for the company's earnings per share (EPS) to be 1.34 yuan in 2024, 1.70 yuan in 2025, and 2.07 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 18, 15, and 12 [83][85]. - The return on equity (ROE) is projected to improve significantly from 7% in 2023 to 17% in 2024 and stabilize at 18% in the following years [83][85].