JINNENG(SH:603113) Huaxin Securities·2025-08-19 06:46Investment Rating - The report maintains a "Buy" investment rating for the company [1]. Core Views - The company has turned a profit in the first half of 2025, achieving a total revenue of 8.547 billion yuan, a year-on-year increase of 24.13%, and a net profit attributable to shareholders of 26 million yuan, marking a turnaround from losses [4][5]. Summary by Sections Market Performance - The company's stock price is currently at 7.97 yuan, with a total market capitalization of 6.8 billion yuan and a 52-week price range of 4.37 to 8.09 yuan [1]. Revenue and Profitability - In Q2 2025, the company reported a revenue of 4.086 billion yuan, a year-on-year increase of 16.78%, but a net profit of -50 million yuan, reflecting a significant decline [4][5]. Key Investment Points - The company's performance improvement is driven by increased demand for olefin products, particularly in non-US markets, which has helped mitigate the impact of US tariffs. The export volume of polypropylene reached 159,900 tons in the first half of 2025, accounting for 10.22% of China's total exports in this category [5]. - The company has also seen significant growth in carbon black exports, with a volume of 120,900 tons, a year-on-year increase of 106.88% [5]. Cost Structure and Cash Flow - The company has optimized its expense structure, with a slight increase in R&D expenses due to accelerated investment. The net cash flow from operating activities was 454 million yuan, a 42.61% increase year-on-year [6]. Competitive Positioning - As a leading player in the domestic olefin industry, the company has established the largest single-plant PDH facility globally and is focusing on high-end product development and cost control to enhance its competitive edge [8]. Profit Forecast - The company is projected to achieve net profits of 126 million yuan in 2025, 244 million yuan in 2026, and 328 million yuan in 2027, with corresponding EPS of 0.15, 0.29, and 0.39 yuan [9].