EASTERN SHENGHONG(SZ:000301) EBSCN·2025-09-02 07:57Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company reported a revenue of 609 billion yuan for the first half of 2025, a year-on-year decrease of 16.4%, while the net profit attributable to shareholders was 3.86 billion yuan, an increase of 21.2% [4][5]. - The decline in performance in Q2 2025 is attributed to falling oil prices and a downturn in aromatics market conditions, with Brent crude oil averaging 66.76 USD per barrel, down 22% year-on-year [5][6]. - The company is actively consolidating its "1+N" industrial layout, focusing on high-end product development and expanding its new energy materials product matrix [6][7]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 306 billion yuan, down 15.2% year-on-year, and a net profit of 0.45 billion yuan, down 37.1% year-on-year [4][5]. - The company’s revenue and profit forecasts for 2025-2027 have been adjusted downward due to the impact of falling oil prices and market conditions [8][9]. Industry Outlook - The report highlights a potential reversal in the refining industry's downturn due to ongoing "anti-involution" policies aimed at regulating competition and promoting high-value transformation in the petrochemical sector [7]. - The company is expected to benefit from these policies as they may help mitigate low-price competition in the industry [7]. Profitability and Valuation - The company’s projected net profits for 2025, 2026, and 2027 are 9.65 billion yuan, 14.04 billion yuan, and 20.62 billion yuan, respectively, with corresponding EPS of 0.15, 0.21, and 0.31 yuan [8][9]. - The report indicates a stable growth trajectory for the company’s new materials projects, suggesting significant growth potential [8].