BAOFENG ENERGY(SH:600989) KAIYUAN SECURITIES·2025-03-12 05:48Investment Rating - The investment rating for Baofeng Energy is maintained at "Buy" [2][4]. Core Views - The company achieved a revenue of 32.98 billion yuan in 2024, representing a year-on-year increase of 13.2%. The net profit attributable to shareholders reached 6.34 billion yuan, up 12.2% year-on-year. The company expects significant growth in net profit for 2025-2027, forecasting 12.74 billion yuan in 2025, which is a 101% increase year-on-year [4][6]. - The company is benefiting from a decrease in coal prices and the stable release of production capacity, particularly from its projects in Inner Mongolia and Xinjiang, which are expected to contribute to future growth [4][6]. Summary by Sections Financial Performance - In Q4 2024, Baofeng Energy reported a revenue of 8.71 billion yuan, a quarter-on-quarter increase of 18%. The net profit for the same quarter was 1.8 billion yuan, up 46.2% quarter-on-quarter [4][5]. - The average selling price for polyethylene and polypropylene in 2024 was 7,088.6 yuan/ton and 6,696.5 yuan/ton, respectively, with slight year-on-year changes [5]. Production Capacity and Projects - The first production line of the 3 million tons per year olefin project in Inner Mongolia was launched in November 2024, with subsequent lines expected to come online in early 2025. The 4 million tons per year olefin project in Xinjiang is also progressing well [6]. - The cost advantages of the Inner Mongolia and Xinjiang projects are highlighted, with lower transportation costs and investment per ton compared to other regions [6]. Dividend Policy - The company has increased its dividend payout ratio to 47.44% in 2024, an increase of 11.1 percentage points from 2023, enhancing returns for investors [6].