Zheng Quan Zhi Xing·2025-08-30 07:13Core Viewpoint - The company Xin Feng Ming is expected to see gradual improvement in profitability, with a "buy" rating given by Tianfeng Securities based on its performance in the polyester filament market [1]. Financial Performance - In H1 2025, the company achieved a net profit attributable to shareholders of 709 million yuan, representing a year-on-year increase of 17.28% [2]. - The company's operating revenue for H1 2025 was 33.491 billion yuan, up 7.1% year-on-year, with a net profit of 709 million yuan, and a non-recurring net profit of 660 million yuan, which increased by 22.47% year-on-year [2]. - In Q2 2025, the company reported revenue of 18.934 billion yuan, a year-on-year increase of 12.57%, and a net profit of 403 million yuan, up 22.24% year-on-year [2]. Sales and Margins - The company saw significant growth in product sales, with H1 2025 volumes for POY, FDY, DTY, short fibers, and PTA reaching 2.42 million tons, 720,000 tons, 440,000 tons, 640,000 tons, and 1.09 million tons respectively, reflecting year-on-year increases of 4%, 2%, 22%, 2%, and 380% [3]. - The average selling prices for major products decreased year-on-year, with POY, FDY, DTY, short fibers, and PTA priced at 6,194 yuan, 6,484 yuan, 8,094 yuan, 6,132 yuan, and 4,277 yuan per ton, showing declines of 10%, 19%, 8%, 6%, and 18% respectively [3]. - The sales gross margin for H1 2025 was 6.42%, showing a slight improvement year-on-year [3]. Strategic Initiatives - The company is enhancing its upstream supply chain by advancing PTA project construction, with the third phase of its PTA project expected to begin trial production by the end of 2024, and total PTA capacity projected to exceed 10 million tons by the end of 2025 [4]. - Xin Feng Ming is actively exploring the fiber new materials sector and has formed a strategic partnership with Liv Bio to pioneer the production of 100% bio-based polyester PEF filament [4]. Market Outlook - As of August 22, 2025, the inventory days for POY, FDY, and DTY were at 16, 18.7, and 25.4 days respectively, indicating a relatively low inventory level compared to historical data [5]. - With the approach of the peak season in September, there are signs of new orders and shipments gradually increasing, leading to a positive outlook for the polyester filament market [5]. - The company maintains profit forecasts of 1.5 billion, 2 billion, and 2.6 billion yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 15, 12, and 9 times based on the stock price as of August 29, 2025 [5].