宝丰能源：二季度业绩亮眼，新疆项目启动环评

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong performance in Q2 2024, with revenue of 16.897 billion yuan, a year-on-year increase of 29.09%, and a net profit attributable to shareholders of 3.305 billion yuan, up 46.44% year-on-year [4] - The company is advancing its Inner Mongolia project and has initiated an environmental assessment for its Xinjiang project, which includes significant production capacities for methanol and olefins [5][6] - The company has improved its cost structure by increasing the proportion of coal sourced from Xinjiang, which has led to a reduction in overall production costs [4] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 8.670 billion yuan, with a year-on-year increase of 36.39% and a quarter-on-quarter increase of 5.39% [4] - The net profit for Q2 2024 was 1.884 billion yuan, reflecting a year-on-year increase of 75.80% and a quarter-on-quarter increase of 32.57% [4] - The company expects net profits for 2024-2026 to be 8.462 billion, 13.576 billion, and 15.046 billion yuan respectively, with corresponding P/E ratios of 13.02, 8.11, and 7.32 [6] Project Developments - The Inner Mongolia project is progressing as planned, with 70% of the investment already completed and the first production unit expected to start trial operations in October 2024 [5] - The Xinjiang coal-based olefin project has begun its environmental assessment, which is expected to enhance the company's long-term growth potential [5][6] Market Position - The company has increased its procurement of Xinjiang coal, which now accounts for nearly 7 percentage points more of its total coal usage compared to 2023, enhancing its cost advantages [4] - The polyethylene and polypropylene segments have seen improved margins due to supply constraints and favorable market conditions [4]