BAOFENG ENERGY(SH:600989) Shenwan Hongyuan Securities·2025-10-26 10:45Investment Rating - The report maintains a "Buy" rating for Baofeng Energy [1] Core Insights - Baofeng Energy's Q3 performance slightly exceeded expectations, with a total revenue of 35.545 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 46.4%. The net profit attributable to shareholders reached 8.95 billion yuan, up 97.3% year-on-year [6] - The company's core products, including polyethylene and polypropylene, showed significant sales growth despite a decline in prices, indicating strong operational resilience [6] - The Inner Mongolia Phase I project has reached full production capacity, enhancing cost advantages, while the Ningdong Phase IV project is expected to commence production by the end of 2026 [6] Financial Data and Profit Forecast - Total revenue projections for Baofeng Energy are as follows: 55.372 billion yuan in 2025, 56.490 billion yuan in 2026, and 59.240 billion yuan in 2027, with respective year-on-year growth rates of 67.9%, 2.0%, and 4.9% [5] - The net profit attributable to shareholders is forecasted to be 13.523 billion yuan in 2025, 15.052 billion yuan in 2026, and 16.041 billion yuan in 2027, with year-on-year growth rates of 113.4%, 11.3%, and 6.6% respectively [5] - The report indicates a projected PE ratio of 10 for 2025, 9 for 2026, and 8 for 2027, suggesting a favorable valuation outlook [5] Operational Highlights - The company has successfully implemented advanced technologies in its Inner Mongolia project, which is the largest coal-to-olefins project globally, enhancing production efficiency and cost-effectiveness [6] - The Xinjiang project has received necessary environmental and safety approvals, further expanding the company's growth potential in the long term [6]