BAOFENG ENERGY(SH:600989) Shenwan Hongyuan Securities·2025-08-24 13:43Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's Q2 performance met expectations, with significant contributions from the Inner Mongolia project and a recovery in olefin price differentials [7] - For H1 2025, the company reported total revenue of 22.82 billion yuan, a year-on-year increase of 35.05%, and a net profit attributable to shareholders of 5.72 billion yuan, up 73.02% year-on-year [7] - The Inner Mongolia project has reached full production capacity, significantly boosting olefin production and sales [7] Financial Performance Summary - In Q2 2025, the company achieved a revenue of 12.05 billion yuan, representing a year-on-year increase of 38.97% and a quarter-on-quarter increase of 11.87% [7] - The gross profit margin for Q2 2025 was 37.97%, showing a year-on-year decrease of 0.26 percentage points but a quarter-on-quarter increase of 2.61 percentage points [5] - The net profit margin for Q2 2025 reached 27.23%, reflecting a year-on-year increase of 5.50 percentage points and a quarter-on-quarter increase of 4.61 percentage points [5] Revenue and Profit Forecast - The company forecasts total revenue of 55.37 billion yuan for 2025, with a year-on-year growth rate of 67.9% [6] - The projected net profit attributable to shareholders for 2025 is 13.52 billion yuan, indicating a year-on-year growth rate of 113.4% [6] - The earnings per share for 2025 is estimated at 1.84 yuan [6] Project Developments - The Inner Mongolia project, with a capacity of 3 million tons per year, is the largest coal-to-olefin project globally and has begun production, contributing significantly to the company's revenue [7] - The company is also advancing its Ningdong Phase IV project, expected to be operational by the end of 2026 [7] - A new coal-to-olefin project in Xinjiang has received environmental and safety approvals, further expanding the company's growth potential [7]