STL(SZ:002648) Xin Lang Cai Jing·2025-08-12 08:32Core Viewpoint - The company reported a strong performance in the first half of 2025, with significant year-on-year growth in revenue and net profit, despite some challenges in the second quarter due to falling oil prices and operational issues [1][4]. Financial Performance - In H1 2025, the company achieved revenue of 23.46 billion yuan, a year-on-year increase of 20.9%, and a net profit attributable to shareholders of 2.74 billion yuan, up 33.4% year-on-year [1]. - In Q2 2025, the company recorded revenue of 11.13 billion yuan, a 5.1% year-on-year increase but a 9.7% decrease quarter-on-quarter; net profit was 1.18 billion yuan, up 13.7% year-on-year but down 25.1% quarter-on-quarter [1]. - The gross profit margin for H1 2025 was 20.56%, a decrease of 0.52 percentage points year-on-year, with Q2 2025 gross margin at 19.33%, down 1.27 and 2.35 percentage points year-on-year and quarter-on-quarter, respectively [1]. Market Conditions - In Q2 2025, the price of ethane decreased due to lower natural gas prices, with the average price at $179 per ton, reflecting a year-on-year increase of $36 but a quarter-on-quarter decrease of $24 [2]. - The price spread between ethane and ethylene narrowed in Q2 2025, with the spread calculated at $567 per ton, down $43 from the previous quarter [2]. - The company faced some operational challenges due to U.S.-China tariffs affecting the C2 facilities, but the easing of these tariffs is expected to reduce trade risks moving forward [2]. C3 Segment Performance - The decline in oil prices in Q2 2025 put pressure on the C3 segment's profitability, with price spreads for propane to propylene, acrylic acid, and butyl acrylate decreasing [3]. - The company conducted routine maintenance on its PDH facilities in Q2, leading to increased costs, but there is potential for recovery in C3 profitability in the latter half of the year due to new capacity coming online [3]. Future Outlook - The company plans to launch several new material projects in the second half of 2025, including 40,000 tons of EAA and 160,000 tons of high polymer emulsions, which are expected to enhance performance [3]. - The growth potential is primarily linked to the α-olefin comprehensive utilization high-end new materials industrial park project, with the third phase expected to be operational by the second half of 2026 [3]. Investment Analysis - The profit forecast for 2025 has been revised down to 6.2 billion yuan from the previous 6.9 billion yuan, while the forecasts for 2026 and 2027 remain at 7.7 billion and 9.4 billion yuan, respectively [4]. - The company maintains a "buy" rating, focusing on the growth potential of the C2 segment and the recovery of the C3 segment [4].