Sobute New Materials (SH:603916) Bank of China Securities·2025-09-08 07:13Investment Rating - The report maintains a "Buy" rating for the company, with a previous rating also being "Buy" [1][6]. Core Views - The company has shown improvement in profitability in the second quarter, with a year-on-year revenue increase of 7.03% to RMB 1.673 billion and a net profit increase of 18.68% to RMB 0.6325 billion for the first half of 2025. The second quarter alone saw a revenue of RMB 0.991 billion, reflecting a 0.70% year-on-year growth, and a net profit of RMB 0.39 billion, up 20.86% year-on-year [4][10][11]. - The company is expected to benefit from its competitive advantages in the concrete admixture industry, particularly with the growth in sales of functional materials and high-performance water reducers [4][9]. - The company is expanding its efforts in major engineering projects and enhancing its competitiveness in overseas markets, with significant achievements in sectors such as hydropower and nuclear power [9]. Financial Summary - For the first half of 2025, the company achieved total revenue of RMB 1.673 billion, with a gross margin of 34.75% and a net asset return of 1.47% [9][10]. - The company’s earnings per share (EPS) for 2025 are projected to be RMB 0.35, with net profits expected to reach RMB 1.51 billion, RMB 2.03 billion, and RMB 2.49 billion for 2025, 2026, and 2027 respectively [6][8]. - The company’s market capitalization is approximately RMB 4.63 billion, with an average trading volume of RMB 138.58 million over the past three months [2][3].