SUNSTONE(SH:603612) Zheng Quan Zhi Xing·2025-08-21 22:55Core Viewpoint - The financial performance of Suotong Development (603612) for the first half of 2025 shows significant growth in revenue and net profit, indicating strong operational momentum and effective cost management [1]. Financial Performance Summary - Total revenue reached 8.306 billion yuan, a year-on-year increase of 28.28% [1]. - Net profit attributable to shareholders was 523 million yuan, up 1568.52% year-on-year [1]. - The second quarter alone saw total revenue of 4.564 billion yuan, a 35.45% increase compared to the same period last year [1]. - The gross profit margin improved to 16.46%, reflecting a 73.59% increase year-on-year [1]. - The net profit margin rose to 8.54%, a significant increase of 361.61% year-on-year [1]. - Total expenses (selling, administrative, and financial) amounted to 267 million yuan, accounting for 3.22% of revenue, down 13.63% year-on-year [1]. Balance Sheet Highlights - Accounts receivable increased by 31.82% year-on-year, reaching 2.496 billion yuan [1]. - Cash and cash equivalents decreased by 54.84% to 1.591 billion yuan [1]. - Interest-bearing liabilities rose by 7.04% to 9.28 billion yuan [1]. - The book value per share increased to 11.21 yuan, a 7.54% rise year-on-year [1]. Cash Flow Analysis - Operating cash flow per share was -0.72 yuan, a decrease of 238.07% year-on-year, indicating cash outflow pressures [1]. - The net cash flow from operating activities decreased by 227.16%, primarily due to increased raw material costs and inventory buildup related to the 1 million-ton calcined coke project [7]. Operational Insights - The increase in revenue was driven by rising prices and demand for prebaked anodes, as well as new capacity coming online through partnerships with quality downstream customers [5]. - The cost of goods sold increased by 18.39%, attributed to higher raw material prices and increased production volume [6]. Investment Considerations - The company's return on invested capital (ROIC) was 4.23%, indicating moderate capital efficiency [9]. - The company has a history of cyclical performance, with a median ROIC of 6.66% since its listing [9]. - The cash flow situation is a concern, with cash and cash equivalents only covering 26.96% of current liabilities [10].