BAOFENG ENERGY(600989) 东方证券·2025-03-19 05:06Investment 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, with a notable growth rate of 57.8% in 2025 [6][9]. - The company's gross margin is projected to improve from 30.4% in 2023 to 37.6% in 2027, driven by cost optimization from declining coal prices [6][9]. - The Inner Mongolia project is progressing well, with a total capacity of 520,000 tons per year expected to be achieved, positioning the company as a leader in the domestic coal-to-olefins industry [9][10]. - The Xinjiang project is anticipated to provide additional growth opportunities, leveraging lower coal prices in the region for cost advantages [9][10]. Financial Summary - The company's operating income for 2024 is projected at 32.98 billion CNY, a 13.2% increase year-on-year, with a further increase to 44.33 billion CNY in 2025, reflecting a 34.4% growth [6][9]. - The net profit for 2024 is expected to be 6.34 billion CNY, up 12.2% from the previous year, with a significant jump to 10.00 billion CNY in 2025 [6][9]. - The earnings per share (EPS) are forecasted to rise from 0.77 CNY in 2023 to 1.85 CNY in 2027, indicating strong profitability growth [6][9]. - The company's net profit margin is projected to improve from 19.4% in 2023 to 24.0% in 2027, showcasing enhanced operational efficiency [6][9].