Investment Rating - The report maintains a "Strong Buy" rating for Tongkun Co., Ltd. (601233) [1] Core Views - The company reported a revenue of 44.158 billion yuan for the first half of 2025, a year-on-year decrease of 8.41%, while the net profit attributable to shareholders was 1.097 billion yuan, an increase of 2.93% year-on-year [1] - In Q2 2025, the company achieved a revenue of 24.738 billion yuan, down 8.73% year-on-year but up 27.38% quarter-on-quarter, with a net profit of 486 million yuan, a slight increase of 0.04% year-on-year but a decrease of 20.54% quarter-on-quarter [1] - The long filament production capacity is fully utilized, with an operating rate of 96.3% in Q2 2025, and sales volume increased by 5% year-on-year and 38.2% quarter-on-quarter [7] - The report highlights that the supply-demand dynamics in the long filament industry are continuously improving, with expectations for profit margins to rise in the long term [7] Financial Summary - Total revenue for 2024 is projected at 101.307 billion yuan, with a year-on-year growth rate of 22.6%, while for 2025, it is expected to decrease to 97.086 billion yuan, reflecting a decline of 4.2% [3] - The net profit attributable to shareholders is forecasted to grow significantly from 1.202 billion yuan in 2024 to 2.167 billion yuan in 2025, representing a growth rate of 80.3% [3] - The earnings per share (EPS) is expected to increase from 0.50 yuan in 2024 to 0.90 yuan in 2025, with a corresponding price-to-earnings (P/E) ratio of 16 times [3] Market Position and Valuation - The company is positioned as a leader in the long filament industry, with a total production capacity of 13.5 million tons for polyester filament and 10.2 million tons for PTA [7] - The target price for the stock is set at 18.9 yuan, with the current price at 14.62 yuan, indicating a potential upside [3] - The report suggests that the stock price does not fully reflect the profitability potential of the petrochemical segment, which is significantly undervalued [7]