BAOFENG ENERGY(SH:600989) Huaxin Securities·2025-08-25 09:19Investment Rating - The report maintains a "Buy" investment rating for the company [9] Core Views - The company achieved a significant increase in revenue and net profit in the first half of 2025, with revenue reaching 22.82 billion yuan, up 35.05% year-on-year, and net profit attributable to shareholders reaching 5.718 billion yuan, up 73.02% year-on-year [4][5] - The growth in revenue is primarily driven by the increase in production and sales of polyolefins [5] - The company’s new projects, particularly in Inner Mongolia, have significantly contributed to its production capacity, making it the largest in China's coal-based olefin industry [8] Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 12.049 billion yuan, a year-on-year increase of 38.97% and a quarter-on-quarter increase of 11.87% [4] - The average profit for oil-based polyethylene was 438 yuan/ton, an increase of 643 yuan/ton year-on-year, while oil-based polypropylene saw an average profit of -260 yuan/ton, an increase of 954 yuan/ton year-on-year [6] Production and Capacity - The company produced 2.4046 million tons of polyolefins in the first half of 2025, a year-on-year increase of 96.64% [6] - The new Inner Mongolia project has a capacity of 2.6 million tons/year for coal-based olefins and has produced 1.1635 million tons of polyolefins, accounting for 48.39% of the company's total production [8] Future Outlook - The company forecasts net profits of 12.162 billion yuan, 12.876 billion yuan, and 13.506 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 9.8, 9.3, and 8.8 [9][11] - The company is actively progressing with new projects, including the Ningdong Phase IV olefin project, which is expected to be completed by the end of 2026 [8]