BAOFENG ENERGY(SH:600989) Tai Ping Yang·2024-09-03 00:03Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a revenue of 16.897 billion yuan in the first half of 2024, representing a year-on-year growth of 29.09%, and a net profit of 3.305 billion yuan, up 46.44% year-on-year [4] - The significant increase in profitability is driven by reduced costs in coal-to-olefins production, with a net profit margin reaching 19.56%, an increase of 2.32 percentage points year-on-year [4] - The company is progressing well with its projects in Inner Mongolia, which are expected to support future growth [4] Summary by Sections Financial Performance - In Q2 2024, the company reported revenues of 8.670 billion yuan and a net profit of 1.884 billion yuan, with year-on-year growth rates of 36.39% and 75.80% respectively [4] - Major products such as polyolefins and coke saw production increases of 87% and 3% year-on-year, respectively [4] - Polyethylene sales reached 575,000 tons, up 68.4% year-on-year, while polypropylene sales were 572,200 tons, up 79.2% year-on-year [4] Project Development - The company is advancing its Inner Mongolia project, which includes a 2.6 million tons/year coal-to-olefins project and a 400,000 tons/year green hydrogen coupling project, expected to be operational in 2024 [4] - The Ningdong Phase 3 project has commenced production, adding 1.5 million tons/year of methanol and 1 million tons/year of olefins capacity [4] - The company has also initiated preparations for the Ningdong Phase 4 olefins project [4] Future Projections - The company is expected to have EPS of 1.1, 1.7, and 1.9 yuan for the years 2024, 2025, and 2026 respectively [4] - Revenue projections for 2024, 2025, and 2026 are 39.351 billion yuan, 55.066 billion yuan, and 62.603 billion yuan, with growth rates of 35.06%, 39.94%, and 13.69% respectively [5][6]