Financial Performance - In H1 2025, the company's operating revenue reached 22.82 billion yuan, a year-on-year increase of 35.0% [1] - The net profit attributable to shareholders was 5.72 billion yuan, up 73.0% year-on-year [1] - The non-recurring net profit attributable to shareholders was 5.58 billion yuan, reflecting a 58.7% year-on-year increase [1] - In Q2 2025, operating revenue was 12.05 billion yuan, a 39.0% increase year-on-year [1] - The net profit attributable to shareholders in Q2 was 3.28 billion yuan, up 74.2% year-on-year [1] - The non-recurring net profit attributable to shareholders in Q2 was 2.98 billion yuan, a 46.6% increase year-on-year [1] Production Capacity and Projects - The company produced 2.4046 million tons of polyolefins (including EVA) in H1 2025, a year-on-year increase of 96.64% [1] - The coal-based olefins project in Inner Mongolia, with a capacity of 2.6 million tons/year, was successfully commissioned and contributed significantly to production [2] - The project is the largest coal-based olefins project globally and the first to apply green hydrogen in a large-scale production process [2] - The company's olefins production capacity has reached 5.2 million tons/year, ranking first in China's coal-based olefins industry [2] - The 100,000 tons/year ethylene vinyl acetate project was successfully commissioned, ensuring stable supply of key raw materials [2] - Ongoing projects include the Ningdong Phase IV olefins project, which is progressing well and is expected to be completed by the end of 2026 [2] Profit Forecast - The company is projected to achieve net profits attributable to shareholders of 11.812 billion yuan, 12.995 billion yuan, and 14.106 billion yuan for the years 2025, 2026, and 2027, respectively [3] - A target price of 19.32 yuan is set based on a 12x PE ratio for 2025, maintaining a "buy" rating [3]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's performance is in line with expectations, with the Inner Mongolia Phase I project achieving full production and profitability reaching new highs [7] - The company expects a significant increase in net profit for the first half of 2025, with a forecasted growth of 63.39%-78.52% year-on-year [7] - The Inner Mongolia project, which utilizes green hydrogen and modern coal chemical processes, is projected to be a major growth driver for the company in 2025 [7] Financial Summary - Total revenue for 2025 is estimated at 55,372 million, with a year-on-year growth rate of 67.9% [6] - The net profit attributable to the parent company is projected to be 13,523 million for 2025, reflecting a year-on-year increase of 113.4% [6] - The earnings per share (EPS) for 2025 is expected to be 1.84 yuan, with a gross margin of 36.0% [6] Company Developments - The Inner Mongolia project has reached a total capacity of 3 million tons per year, making it the largest coal-to-olefins project globally [7] - The company is also advancing its Xinjiang project, which has received necessary environmental and safety approvals, further expanding its growth potential [7] - The company plans to donate up to 600 million to a charity foundation, which may impact management expenses [7]