宝丰能源：H1净利同比高增，烯烃增量稳步兑现

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 21.40 [1][6]. Core Insights - The company reported a significant increase in net profit for H1 2024, achieving RMB 3.3 billion, which is a year-on-year increase of 46%. The revenue for the same period reached RMB 16.9 billion, up 29% year-on-year [1]. - The company is expected to see continued growth in net profit, with projections of RMB 7.9 billion, RMB 12.1 billion, and RMB 13.0 billion for the years 2024, 2025, and 2026 respectively [1][5]. - The company is benefiting from the ramp-up of its Ningdong olefin Phase III capacity, which has led to a significant increase in sales volume for polyethylene and polypropylene, with year-on-year growth of 68% and 79% respectively [2][3]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of RMB 16.9 billion, with a year-on-year increase of 29%. The net profit attributable to the parent company was RMB 3.3 billion, reflecting a 46% increase year-on-year [1]. - The second quarter of 2024 saw revenue of RMB 8.67 billion, a 36% increase year-on-year, and a net profit of RMB 1.88 billion, which is a 76% increase year-on-year [1]. Production and Capacity Expansion - The Ningdong olefin Phase III capacity has significantly increased production, contributing to a sales volume increase of 68% for polyethylene and 79% for polypropylene in H1 2024 [2][3]. - New projects are progressing smoothly, including a 250,000 tons/year EVA facility that began trial production in February 2024, and the Ningdong Phase IV olefin project is in the preparatory stage [3]. Cost and Margin Improvement - The average prices for polyethylene and polypropylene in H1 2024 were RMB 0.83 million/ton and RMB 0.73 million/ton, showing slight year-on-year changes. The cost pressures have eased significantly due to a decrease in coal prices [2][4]. - The overall gross margin improved to 33.6%, an increase of 5.8 percentage points year-on-year, driven by lower raw material costs and increased production efficiency [2].