Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [6]. Core Views - The company reported a sales revenue of 90.914 billion yuan for H1 2025, a year-on-year decrease of 6.35%, and a net profit attributable to shareholders of 6.123 billion yuan, down 25.10% year-on-year [1]. - Despite the decline in revenue and profit, the company experienced growth in the sales volume of its main products, particularly in the polyurethane, petrochemical, and fine chemical sectors [2]. - The company has successfully launched several self-developed projects, which are expected to significantly reduce production costs and enhance profitability [4]. - The forecasted net profit for 2025-2027 is projected to be 12.187 billion yuan, 13.662 billion yuan, and 16.014 billion yuan, respectively, with corresponding price-to-earnings ratios of 16x, 14x, and 12x [5][4]. Summary by Sections Financial Performance - In H1 2025, the company achieved a net profit of 6.123 billion yuan, a decrease of 25.10% year-on-year, with a revenue of 90.914 billion yuan, down 6.35% year-on-year [1]. - The second quarter of 2025 saw a revenue of 47.834 billion yuan, a year-on-year decrease of 6.04% but an increase of 11.07% quarter-on-quarter [1]. Product Sales - The sales volume of polyurethane products reached 3.03 million tons in H1 2025, up 12.64% year-on-year, while petrochemical products sold 2.85 million tons, an increase of 3.64% year-on-year [2]. - In Q2 2025, the sales volume of fine chemicals and new materials surged by 29.35% year-on-year, totaling 1.19 million tons [2]. Subsidiary Performance - The subsidiary Ningbo Wanhua reported a revenue of 14.449 billion yuan, down 20.72% year-on-year, but its net profit increased by 34.33% to 2.344 billion yuan [3]. - Borsod Chem, another subsidiary, faced a net loss of 89 million yuan, a significant decline of 185.82% year-on-year [3]. Strategic Developments - The company has accelerated the lightening of petrochemical raw materials and successfully launched multiple self-developed projects, including a new ethylene unit and advancements in battery materials [4]. - The company is focusing on continuous technological innovation and industry chain layout in the fields of polyurethane, petrochemicals, fine chemicals, and new materials [4].