EASTERN SHENGHONG(SZ:000301) Xin Lang Cai Jing·2025-09-11 02:42Core Insights - The company demonstrated resilience in operations with a significant increase in net profit excluding non-recurring items in H1 2025 despite a challenging environment in the petrochemical industry [1][2] Financial Performance - In H1 2025, the company reported operating revenue of 60.916 billion yuan, a decrease of 16.36% year-on-year, while net profit attributable to shareholders was 0.386 billion yuan, an increase of 21.24% year-on-year [1] - The net profit excluding non-recurring items reached 0.272 billion yuan, marking a substantial increase of 166.21% year-on-year [1] - In Q2 2025, the company achieved a net profit of 0.045 billion yuan, a decrease of 0.027 billion yuan year-on-year and a decline of 0.296 billion yuan quarter-on-quarter [2] - The gross profit for Q2 2025 was 3.180 billion yuan, down by 0.552 billion yuan year-on-year but up by 0.181 billion yuan quarter-on-quarter [2] Segment Performance - The refining segment (Shenghong Refining) turned profitable in H1 2025 with a net profit of 0.257 billion yuan [1] - The new materials segment (Sierbang Petrochemical) and the chemical fiber segment (Shenghong Chemical Fiber) performed steadily, with net profits of 0.120 billion yuan and 0.140 billion yuan, respectively [1] Cost Management - In H1 2025, the company’s expense ratios for sales, management, R&D, and financial costs were 0.25%, 0.79%, 0.54%, and 3.75%, respectively, with slight year-on-year changes [1] - In Q2 2025, the company’s expenses for sales, management, R&D, and financial costs were 0.700 billion, 2.380 billion, 1.600 billion, and 11.540 billion yuan, showing a decrease in most categories year-on-year [2] Strategic Initiatives - The company is advancing its "1+N" industrial layout, focusing on integrating AI into core business operations to enhance productivity and ensure sustainable high-quality development [3] - The EVA project has added 400,000 tons/year of capacity, solidifying the company's position in the new energy and materials sectors, with total EVA capacity reaching 900,000 tons [2][3] Future Outlook - The company has adjusted its revenue forecasts for 2025-2027, expecting revenues of 124.2 billion, 131.65 billion, and 136.92 billion yuan, with net profits of 0.796 billion, 1.134 billion, and 1.532 billion yuan, respectively [4] - The company maintains a "buy" rating based on its growth potential and comprehensive coverage of various olefin production processes [4]