Event: on April 26, 2024, Shandong Heda released its 2023 annual report: operating income in 2023 15Crushgameonline.600 million yuan, down 9.7% from the same period last yearCrushgameonlineThe net profit of returning home was 220 million yuan, down 37.8% from the same period last year; the gross profit margin of sales was 29.3%, down 4.9 pct from the same period last year, and the net profit rate of sales was 14.2%; the net cash flow of pct; business activities decreased by 6.4% to 180 million yuan. In the single quarter of Q4 in 2023, the company achieved operating income of 380 million yuan, year-on-year-3.5%, month-on-month-11.8%; net profit of return to home was-9 million yuan, year-on-year-119.4%, month-on-month-112.8%; net cash flow of operating activities was 82 million yuan. Sales gross margin is 24.2%, year-on-year-5.3 pct, month-on-month-6.2pct. The net profit rate of sales is-2.5%, year-on-year-14.7 pct, month-on-month-19.4 pct. In the single quarter of Q1 in 2024, the company achieved operating income of 435 million yuan, year-on-year + 16.1%, month-on-month + 15.3%, net profit of 54 million yuan, and net cash flow of operating activities of 54 million yuan. Sales gross profit margin is 25.1%, year-on-year-5.9 pct, month-on-month + 0.9 pct. The net profit rate of sales is 12.3%, year-on-year-7.1 pct, month-on-month + 14.8 pct. Investment points: the performance in 2023 was dragged down by the depreciation and amortization of the new base, and the 2024Q1 performance improved month-on-month in 2023. The company achieved a net profit of 220 million yuan, down 37.8% from the same period last year. Mainly due to the downward real estate market in 2023, the destocking of overseas customers, and the intensification of industry competition, product prices have declined, superimposed Gaoqing base products in the initial stage, capacity utilization is relatively low, depreciation and amortization pressure increased. According to the product segment, cellulose ether achieved operating income of 1.13 billion yuan, year-on-year-2.5%, sales volume of 40400 tons, year-on-year + 17%, sales price of 28,000 yuan / ton, year-on-year-16%, gross profit margin 25.5%, down 5.1 pct year-on-year. Plant capsule realized business income of 250 million yuan, year-on-year-10.9%, sales of 11 billion tablets, year-on-year-8%, sales price of 2.23 million yuan / billion tablets, year-on-year-3%. At the end of 2023, the company was under construction of 170 million yuan, 1.24 billion yuan less than at the beginning of 2023, mainly affected by Gaoqing base 410,000 tons / year (first phase) cellulose ether project and environmental protection upgrading and transformation project. In terms of the period expense rate, the sales / management / financial expense rate in 2023 was 1.9%, 7.1% and 0.5% respectively, an increase of 0.5 pct/0.1 / pct/1.5 / pct over the same period last year. 2024Q1 realized a net profit of 54 million yuan, a decrease of 19 million yuan, an increase of 63 million yuan, and a gross profit of 109 million yuan, a decrease of 7 million yuan and an increase of 17 million yuan. In addition, the company's management expenses increased by 4 million yuan compared with the same period last year, decreasing by 25 million yuan compared with the same period last year; net investment income decreased by 1 million yuan compared with the same period last year, an increase of 18 million yuan from the previous year; and asset impairment losses increased by 1 million yuan from the same period last year, decreasing by 222 million yuan from the same period last year. Continue to improve the product portfolio and wait for the inflection point of industry demand by the end of 2023, the company will have a production capacity of 69000 tons of cellulose ether, 5000 tons under construction and 11000 tons of planned unbuilt capacity; plant capsules have a production capacity of 35 billion tablets, with a capacity utilization rate of 39%. The production line under construction has a production capacity of 15 billion tablets. Under the background of mismatch between supply and demand and overcapacity in the industry, the company actively adjusts its products and market structure. In 2023, the technology of high-end pharmaceutical coated products was successful, the second-generation pure capsules were successfully registered, and the company's export revenue accounted for more than 50% from 2022 to 2023. In addition, the company acquires medium Fuhda, expands hydroxyethyl cellulose (HEC) products, and enriches product matrix. The company's cellulose ether-plant capsule integration advantage is outstanding, waiting for the inflection point of industry demand, the company's product capacity utilization is expected to be improved. Earnings forecast and investment rating due to the company's Gaoqing project consolidation to increase depreciation amortization costs, we adjust the company's performance forecast. It is estimated that the 2024amp 2025max 2026 operating income will be 21shock 25 / 2.8 billion yuan, respectively, and the return net profit will be 2.95shock 426pm 515 million yuan respectively, corresponding to PE in 17-12-10. The company's future growth path is clear: Gaoqing project gradually landed, plant capsule production capacity gradually released. Therefore, the "buy" rating is maintained. The risk indicates that the upstream raw material price fluctuation risk; the product price fall risk; the downstream terminal real estate, medicine and food industry demand is lower than expected; the capacity construction and production progress of new projects are lower than expected; the inflation rate in Europe and the United States remains high. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.