BAOFENG ENERGY(SH:600989) Shanxi Securities·2025-10-31 05:20Investment Rating - The report maintains a "Buy-B" rating for Baofeng Energy (600989.SH) [1] Core Views - The company's performance growth is driven by the release of production capacity, with ongoing projects progressing steadily [1] - The full production of the Inner Mongolia olefin project has significantly boosted the company's revenue and profit [5] - The company is actively advancing the approval and construction of several projects, indicating promising long-term growth potential [6] Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 35.54 billion yuan, a year-on-year increase of 46.4%, and a net profit attributable to shareholders of 8.95 billion yuan, up 97.3% year-on-year [4] - In Q3 2025, the company reported a revenue of 12.73 billion yuan, with a year-on-year increase of 72.5% and a net profit of 3.23 billion yuan, reflecting a year-on-year increase of 162.3% [4][5] - The production of polyethylene and polypropylene in Q3 2025 reached 676,800 tons and 655,900 tons, respectively, with year-on-year increases of 172.2% and 155.3% [5] Cost Control and Profitability - The overall gross margin and net margin for Q3 2025 were 38.35% and 25.40%, respectively, showing improvements of 4.23 and 8.70 percentage points year-on-year [5] - The company benefits from significant cost control and scale effects, maintaining a high level of profitability [5] Future Growth Prospects - The company expects net profits attributable to shareholders for 2025-2027 to be 12.2 billion, 13.2 billion, and 14.4 billion yuan, corresponding to P/E ratios of 11.2, 10.4, and 9.5 times [7] - The ongoing projects in Ningdong and Xinjiang are expected to support the company's long-term growth [6][7]