Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 12.208 billion yuan for the first half of 2025, a year-on-year decrease of 4.09% [2][6] - The net profit attributable to the parent company was 0.023 billion yuan, down 83.34% year-on-year, while the net profit after deducting non-recurring gains and losses was 0.022 billion yuan, down 82.14% year-on-year [2][6] - In Q2 2025, the company achieved a revenue of 6.590 billion yuan, a year-on-year decrease of 9.10% but a quarter-on-quarter increase of 17.29% [2][6] - The net profit for Q2 2025 was 0.018 billion yuan, down 83.38% year-on-year but up 228.72% quarter-on-quarter [2][6] Summary by Sections Company Overview - The company focuses on deep processing of C4 raw materials, forming four product lines including butene, isobutylene, butane, and isobutane, with major products like methyl ethyl ketone, maleic anhydride, MMA, and nitrile latex [6] - The company is the largest producer of methyl ethyl ketone in the world, holding a market share of approximately 70% in China [6] Industry Analysis - The C4 industry is experiencing a phase of capacity expansion, with the domestic butanone industry entering a growth period from 2020 to 2024 [6] - The company has a competitive advantage due to its location in Shandong, which has abundant refining resources [6] Financial Performance - The company expects net profits attributable to the parent company to be 0.32 billion yuan, 0.76 billion yuan, and 1.21 billion yuan for 2025, 2026, and 2027 respectively [6] - The projected price-to-earnings ratios for these years are 45.4 times, 19.1 times, and 12.0 times based on the closing price on August 22, 2025 [6] Market Conditions - The company is expected to benefit from a decrease in raw material prices, which will alleviate cost pressures and improve operating conditions [6] - Despite global trade tensions impacting end-demand, the alleviation of cost pressures is anticipated to lead to significant improvements in operational performance [6]