Shengquan Group(SH:605589) Minsheng Securities·2025-08-19 13:11Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index [4][12]. Core Views - The company achieved a revenue of 5.351 billion yuan in H1 2025, representing a year-on-year increase of 15.67%, and a net profit attributable to shareholders of 501 million yuan, up 51.19% year-on-year [1]. - All three major business segments of the company showed strong growth, with synthetic resin sales reaching 391,800 tons, a 15.48% increase year-on-year, and revenue of 2.810 billion yuan, a 10.35% increase [2]. - The company plans to issue convertible bonds to raise up to 2.5 billion yuan for the industrialization of green new energy battery materials and to supplement working capital, enhancing its market influence in the silicon-carbon anode sector [3]. Summary by Sections Financial Performance - In Q2 2025, the company reported revenue of 2.892 billion yuan, a year-on-year increase of 16.13% and a quarter-on-quarter increase of 17.62% [1]. - The net profit for Q2 2025 was 294 million yuan, reflecting a year-on-year increase of 51.71% and a quarter-on-quarter increase of 42.34% [1]. Business Segments - The advanced electronic materials and battery materials segment achieved sales of 40,100 tons, a year-on-year increase of 14.90%, with revenue of 846 million yuan, a 32.43% increase [2]. - The biomass products segment saw sales of 134,100 tons, with revenue of 516 million yuan, marking a year-on-year increase of 26.47% [2]. Future Projections - The company forecasts net profits attributable to shareholders of 1.293 billion yuan, 1.797 billion yuan, and 2.468 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.53 yuan, 2.12 yuan, and 2.92 yuan [4][6].