JINNENG(SH:603113) KAIYUAN SECURITIES·2025-08-19 05:14Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in revenue and net profit for H1 2025, with revenue reaching 8.55 billion yuan, up 24.1% year-on-year, and a net profit of 26.43 million yuan, an increase of 69.44 million yuan year-on-year. However, the company recorded a net loss of 32.86 million yuan after deducting non-recurring items [4][5] - The core products' prices are at the bottom range, and with the decline in raw material prices, there is a significant potential for profit recovery in the second half of the year. The company is expected to benefit from new project launches in the next two years [4][5] - The company has fully launched its olefin and carbon black projects and is looking to expand into the hydrogen energy industry [5] Financial Performance Summary - For H1 2025, olefin production was 738,600 tons, up 113.5% year-on-year, while carbon black production was 371,400 tons, up 26% year-on-year. The company experienced a decline in production and sales in Q2 2025 compared to Q1 2025 [4][5] - The financial forecast for 2025-2027 predicts net profits of 125 million yuan, 220 million yuan, and 334 million yuan, respectively, with corresponding EPS of 0.15 yuan, 0.26 yuan, and 0.39 yuan [6][8] - The company has adjusted its convertible bond price down from 9.75 yuan to 7.62 yuan, a reduction of 22%, signaling management's commitment to maintaining the value of financing tools [5] Valuation Metrics - The projected P/E ratios for 2025, 2026, and 2027 are 40.8, 23.2, and 15.3, respectively, indicating a potential for growth in earnings relative to the current stock price [6][8] - The company has demonstrated a commitment to shareholder returns, with a total dividend payout of approximately 300 million yuan in the first half of the year, reflecting a dividend yield of 4.45% based on the current stock price [5]