宝丰能源（600989）：内蒙项目稳步投产，二季度业绩显著增长

Investment Rating - The investment rating for the company is "Buy" and it is maintained [8]. Core Views - The company reported significant growth in its financial performance for the first half of 2025, with total revenue reaching 22.82 billion yuan, a year-on-year increase of 35.05%. The net profit attributable to shareholders was 5.718 billion yuan, up 73.02% year-on-year, and the net profit excluding non-recurring items was 5.579 billion yuan, reflecting a growth of 58.67% [5][11]. - In Q2 2025, the company achieved revenue of 12.049 billion yuan, representing a year-on-year increase of 38.97% and a quarter-on-quarter increase of 11.87%. The net profit attributable to shareholders for the same period was 3.281 billion yuan, up 74.17% year-on-year and 34.64% quarter-on-quarter [5][11]. Summary by Sections Financial Performance - For the first half of 2025, the company reported total revenue of 22.82 billion yuan, with a net profit of 5.718 billion yuan and a net profit excluding non-recurring items of 5.579 billion yuan [5][11]. - In Q2 2025, the company’s revenue was 12.049 billion yuan, with a net profit of 3.281 billion yuan and a net profit excluding non-recurring items of 2.982 billion yuan [5][11]. Production and Projects - The company’s production of polyethylene and polypropylene in Q2 2025 was 640,500 tons and 629,000 tons, respectively, with significant increases in output due to the ramp-up of production capacity in Inner Mongolia [11]. - The company’s new projects, including the 2.6 million tons/year coal-to-olefins project and the 400,000 tons/year green hydrogen coupled coal-to-olefins project, are progressing well and are expected to enhance production capacity significantly [11]. Market Conditions - The report notes a decline in the prices of coke and coking coal, with the average price of coke in Q2 2025 being approximately 942 yuan/ton, down 12.7% quarter-on-quarter. This price drop is attributed to increased domestic supply and a softening demand environment [11]. - The company’s olefin price spread improved in Q2 2025, driven by lower raw material costs, which contributed to a significant increase in profitability [11].