20230427-国海证券-华鲁恒升-600426.SH-点评报告_Q1业绩承压_新能源新材料产业持续扩张_8页_801kb

Huarong Hengsheng Research Report Summary

Key Overview

The report from Guohai Securities Research analyzes Huarong Hengsheng (600426), maintaining a "Buy" rating. It covers Q1 2023 performance, market data, company outlook, financial projections, and risks. Analysts Li Yongli and Dong Bojun lead the assessment, focusing on the company's operations in agriculture and chemicals.

Q1 2023 Performance

Q1 results showed significant declines due to falling product prices and reduced profit margins. Revenue fell 83% year-over-year and 163% quarter-over-quarter, reaching 605.3 billion CNY. Net profit plummeted 78% year-over-year and surged 352% quarter-over-quarter, though adjusted metrics noted profitability issues from lower product prices like DMF and acet酸, compared to high coal costs.

Company Outlook and Projects

The company's prospects are positive with coal price declines expected to improve margins. Expansion in new energy and materials sectors is ongoing, with projects like the 60万吨/年 carbonate solvent plant and others set for completion in 2023-2025. This strategic growth aims to enhance cost advantages and scale, leveraging existing technologies for long-term advancements.

Financial Projections

Guohai Securities revised profit forecasts to 5.324 billion CNY for 2023, 7.515 billion for 2024, and 9.016 billion for 2025, with EPS of 2.51, 3.54, and 4.25 CNY per share. P/E ratios project 12, 9, and 7 times respectively, supporting the "Buy" recommendation based on anticipated recovery and growth.

Risk Assessment

Key risks include macroeconomic fluctuations, project implementation delays, product or raw material price volatilities, and potential demand declines. Addressing these through diversified investments and cost management is crucial for sustainability.