Hengli Petrochemical (600346) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 112.54 billion, up 2.84% year-over-year; net profit attributable to shareholders was RMB 4.02 billion, up 31.77% year-over-year.

• Core business covers refining, aromatics, olefins, basic and fine chemicals, and downstream new materials, with a fully integrated value chain.

• New material capacity ramp-up and major projects are on track, with the 1.6 million ton/year high-performance resin and new materials project expected to be fully operational in H2 2024.

• The company completed a cash dividend of RMB 0.55 per share for 2023, totaling RMB 3.87 billion, with a payout ratio of 56.07%.

Financial highlights

• Operating income: RMB 112.54 billion, up 2.84% year-over-year.

• Net profit attributable to shareholders: RMB 4.02 billion, up 31.77% year-over-year.

• Net profit excluding non-recurring items: RMB 3.54 billion, up 55.69% year-over-year.

• Basic and diluted EPS: RMB 0.57, up 32.56% year-over-year.

• Operating cash flow: RMB 12.53 billion, up 3.25% year-over-year.

Outlook and guidance

• The 1.6 million ton/year high-performance resin and new materials project is expected to be fully operational in H2 2024, enhancing the company's product mix and profitability.

• Functional film and lithium battery separator projects are progressing, with full completion expected by H1 2025.

• The company will continue to focus on cost control, efficiency improvement, and green operations.