BAOFENG ENERGY(SH:600989) Capital Securities·2025-10-27 06:18Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's performance has significantly improved due to the growth in olefin production and sales, with a notable advantage in coal-to-olefin processes [3][6] - The company reported a revenue of 355.45 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 46.43%, and a net profit attributable to shareholders of 89.50 billion yuan, up 97.27% year-on-year [7] - The company has successfully achieved full production capacity at its Inner Mongolia project, leading to substantial increases in polyethylene, polypropylene, and EVA sales [7] - The cost advantages of coal-to-olefin production are expected to enhance profitability, supported by a decline in coal prices [7] - Future growth is anticipated from new project developments, including the Ningdong Phase IV olefin project and others in Xinjiang and Inner Mongolia [7] Financial Summary - Revenue projections for 2024, 2025, 2026, and 2027 are 329.83 billion yuan, 483.40 billion yuan, 547.22 billion yuan, and 582.04 billion yuan, respectively, with growth rates of 13.2%, 46.6%, 13.2%, and 6.4% [4] - Net profit attributable to shareholders is forecasted to be 63.38 billion yuan, 121.13 billion yuan, 139.62 billion yuan, and 152.89 billion yuan for the same years, with growth rates of 12.2%, 91.1%, 15.3%, and 9.5% [4] - Earnings per share (EPS) are expected to be 0.86 yuan, 1.65 yuan, 1.90 yuan, and 2.08 yuan for 2024, 2025, 2026, and 2027, respectively [4] Market Performance - The company's stock closed at 18.10 yuan, with a one-year high of 18.58 yuan and a low of 13.16 yuan [1] - The current price-to-earnings (P/E) ratio is 12.35, and the price-to-book (P/B) ratio is 2.89 [1]