Shengquan Group(SH:605589) Huaxin Securities·2025-08-19 14:31Investment Rating - The report maintains a "Buy" investment rating for the company [9] Core Views - The company achieved a year-on-year increase in H1 profits, driven by steady growth in sales of electronic and battery materials, supported by technological innovation and market expansion [5][4] - The company's revenue for H1 2025 reached 5.351 billion yuan, up 15.67% year-on-year, with a net profit attributable to shareholders of 501 million yuan, reflecting a 51.19% increase [4] - The growth in advanced electronic materials and battery materials revenue was particularly notable, with a 32.43% year-on-year increase in H1 2025 [5] Financial Performance - In Q2 2025, the company reported a revenue of 2.892 billion yuan, a 16.13% year-on-year increase, and a net profit of 294 million yuan, up 51.71% year-on-year [4] - The financial expense ratio increased primarily due to interest payments on repaid loans, while sales and management expense ratios decreased [6] - The company forecasts net profits of 1.248 billion, 1.465 billion, and 1.836 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 21.6, 18.4, and 14.7 [9][11] Product Performance - Revenue from advanced electronic materials and battery materials reached 846 million yuan in H1 2025, with a sales volume of 40,100 tons, marking a 14.90% increase [5] - The synthetic resin segment generated 2.810 billion yuan in revenue, with a sales volume of 391,800 tons, reflecting a 15.48% increase [5] - Biomass products revenue increased by 26.47% year-on-year, reaching 516 million yuan in H1 2025 [5] Future Outlook - The company is expected to benefit from the rapid release of new production capacity, with strong growth projections for the upcoming years [9] - The ongoing expansion projects in biomass production are set to enhance the company's market position and meet high-quality demands from international markets [8]