BAOFENG ENERGY(600989) 东方证券·2025-03-19 08:27Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.22 CNY, reflecting a 30% premium over the average PE of comparable companies [4][9]. Core Views - The company has shown steady revenue growth, with a projected increase in operating income from 29.14 billion CNY in 2023 to 56.52 billion CNY in 2027, representing a compound annual growth rate (CAGR) of 18.3% [6][9]. - The net profit attributable to the parent company is expected to rise significantly, from 5.65 billion CNY in 2023 to 13.58 billion CNY in 2027, indicating a robust growth trajectory [6][9]. - The Inner Mongolia project is entering a ramp-up phase, with significant production capacity expected to enhance the company's earnings in 2025 [9][10]. - The company is also exploring new opportunities in Xinjiang, which could provide additional growth potential due to lower coal prices compared to other regions [9][10]. Financial Summary - Revenue is projected to grow from 29.14 billion CNY in 2023 to 44.33 billion CNY in 2025, with a year-on-year growth rate of 34.4% [6]. - Operating profit is expected to increase from 6.79 billion CNY in 2023 to 12.04 billion CNY in 2025, reflecting a growth rate of 53.8% [6]. - The company's gross margin is anticipated to improve from 30.4% in 2023 to 36.3% in 2025, driven by cost optimization from declining coal prices [6][9]. - The net profit margin is projected to rise from 19.4% in 2023 to 22.6% in 2025, indicating improved profitability [6][9]. - The earnings per share (EPS) are forecasted to increase from 0.77 CNY in 2023 to 1.36 CNY in 2025 [6][9].