SCC(SH:600740) Minsheng Securities·2025-08-26 08:27Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [5] Core Views - The company reported a significant decline in revenue and a net loss for the first half of 2025, with total revenue of 3.226 billion yuan, down 18.23% year-on-year, and a net loss attributable to shareholders of 77.6111 million yuan, compared to a net profit of 184 million yuan in the same period last year [1] - The decline in investment income is attributed to reduced income from the coking business and decreased profits from the associated company, China Coal Huajin, leading to a 55.35% year-on-year drop in recognized investment income to 601 million yuan [1][2] - The company experienced a narrowing of losses in Q2 2025, with a net profit of -7.352 million yuan, an improvement of 62.91 million yuan compared to the previous quarter [1][2] Summary by Sections Financial Performance - In Q2 2025, the company achieved a coking production of 735,600 tons, a year-on-year decrease of 2.91% but a quarter-on-quarter increase of 0.5%. Coking sales were 761,800 tons, down 1.89% year-on-year but up 4.71% quarter-on-quarter [2] - The average selling price of coke in Q2 2025 was 1,288.57 yuan per ton, down 29.72% year-on-year and 11.19% quarter-on-quarter. The unit procurement cost of coking coal was 1,010.54 yuan per ton, down 12.97% quarter-on-quarter and 35.39% year-on-year [2] - The gross profit from coking was -18.4028 million yuan, showing improvement from -83.1313 million yuan in Q1 2025, indicating ongoing pressure on coking business performance [2] Price Trends of Chemical Products - The report notes a decline in the prices of major chemical products in Q2 2025, including asphalt at 3,197.37 yuan per ton (down 26.99% year-on-year), industrial naphthalene at 4,386.29 yuan per ton (down 12.28% year-on-year), and carbon black at 4,845.45 yuan per ton (down 25.6% year-on-year) [3] Profit Forecast - The forecast for the company's net profit attributable to shareholders for 2025-2027 is 97 million yuan, 113 million yuan, and 162 million yuan, respectively, with corresponding EPS of 0.04 yuan, 0.04 yuan, and 0.06 yuan. The PE ratios for these years are projected to be 108, 93, and 64 times, respectively [4][8]