STL(SZ:002648) Huachuang Securities·2025-08-15 03:02Investment Rating - The report maintains a "Strong Buy" rating for Satellite Chemical, expecting it to outperform the benchmark index by over 20% in the next six months [2][18]. Core Views - Satellite Chemical reported a revenue of 23.46 billion yuan for the first half of 2025, a year-on-year increase of 20.93%, and a net profit attributable to shareholders of 2.744 billion yuan, up 33.44% year-on-year [2]. - The company is expected to benefit from a decline in ethane prices, which may help restore profitability in Q3 2025 [2][8]. - The company is expanding its industrial chain and enhancing its facilities, with significant investments in high-value products [2][8]. Financial Performance Summary - For Q2 2025, the company achieved a revenue of 11.131 billion yuan, with a year-on-year increase of 5.05% but a quarter-on-quarter decrease of 9.72% [2]. - The gross profit margin for Q2 2025 decreased by 2.35 percentage points to 19.33%, and the net profit margin fell by 2.16 percentage points to 10.55% [8]. - The report forecasts revenue growth rates of 10.0%, 10.5%, 9.6%, and 23.0% for the years 2024 to 2027, respectively [4]. Price Target and Valuation - The target price for Satellite Chemical is set at 23.04 yuan, based on a relative valuation method using a 12x PE ratio for 2025 [4][8]. - The current market price is 18.63 yuan, indicating potential upside [4]. Industry Outlook - The report highlights that the ethane supply is returning to normal, which may lead to a more favorable cost structure for the company [8]. - The company is also expected to benefit from the completion of its alpha-olefins project, which has a total investment of 26.6 billion yuan [8].