BAOFENG ENERGY(SH:600989) EBSCN·2024-07-29 11:01Investment Rating - The report maintains an "Accumulate" rating for the company [2][10]. Core Views - The company achieved significant growth in H1 2024, with revenue reaching 16.895 billion yuan, a year-on-year increase of 29%, and a net profit attributable to shareholders of 3.304 billion yuan, up 46% year-on-year [7][8]. - The increase in performance is primarily attributed to the production launch of the Ningdong Phase III coal-to-olefins project, which significantly boosted olefin product sales [8]. - The company is focused on sustainable growth through strategic projects and employee stock ownership plans, reflecting confidence in future development [9]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 16.895 billion yuan and a net profit of 3.304 billion yuan, with Q2 net profit alone reaching 1.883 billion yuan, marking a 76% increase year-on-year and a 33% increase quarter-on-quarter [7][8]. - The average market prices for main products in H1 2024 were 2,133 yuan/ton for coke, 8,355 yuan/ton for polyethylene, and 7,778 yuan/ton for polypropylene, with coke prices down 14% year-on-year, while polyolefin prices saw slight increases [8]. Growth Drivers - The Ningdong Phase III project is the world's first coal-to-olefins project utilizing a 1 million ton DMTO unit, adding 1.5 million tons/year of methanol capacity and 1 million tons/year of olefins capacity [9]. - The company is also advancing the Inner Mongolia Phase I project, which is expected to further enhance its production capabilities [9]. Shareholder Returns - The company has a strong track record of cash dividends, distributing approximately 10.6 billion yuan over the past five years, which represents about 40% of the net profit attributable to shareholders during the same period [9]. - For 2023, the company plans to distribute a total cash dividend of 2.054 billion yuan, with a payout ratio of 36.34% [9]. Future Outlook - The company forecasts net profits of 8.829 billion yuan, 13.877 billion yuan, and 14.974 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.20 yuan, 1.89 yuan, and 2.04 yuan [10][11].