Sobute New Materials (SH:603916) KAIYUAN SECURITIES·2025-09-01 08:40Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant improvement in its performance, with a revenue of 1.673 billion yuan in H1 2025, representing a year-on-year growth of 7.03%, and a net profit attributable to the parent company of 63 million yuan, up 18.68% year-on-year [6] - The company is expected to benefit from the recovery in downstream demand, particularly as a leading producer of water-reducing agents, with forecasts for net profits of 153 million, 204 million, and 244 million yuan for 2025, 2026, and 2027 respectively [6] - The company has expanded its product offerings and increased its market competitiveness, particularly in the functional materials segment, which saw a revenue growth of over 25% year-on-year in Q2 2025 [6][7] Financial Summary - In Q2 2025, the company achieved a revenue of 999 million yuan, a year-on-year increase of 0.70% and a quarter-on-quarter increase of 45.45%, with a net profit of 39 million yuan, up 20.86% year-on-year and 59.97% quarter-on-quarter [6] - The company's high-performance water-reducing agents and functional materials segments showed strong sales growth, with respective sales volumes of 306,000 tons and 107,900 tons in Q2 2025 [6] - The financial projections indicate a steady increase in revenue and net profit over the next few years, with expected revenues of 3.839 billion, 4.247 billion, and 4.963 billion yuan for 2025, 2026, and 2027 respectively [8] Market Expansion - The company is actively expanding its presence in the domestic infrastructure market, particularly in major projects in the western regions, and has achieved notable results in sectors such as hydropower, nuclear power, and railways [7] - The company has also established new subsidiaries in overseas markets including the Philippines, Singapore, and Thailand, enhancing its international business footprint [7]