Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a revenue of 33.491 billion yuan for H1 2025, a year-on-year increase of 7.1%, and a net profit attributable to shareholders of 709 million yuan, up 17.3% year-on-year [5] - In Q2 2025, the company achieved a revenue of 18.934 billion yuan, reflecting a year-on-year increase of 12.6% and a quarter-on-quarter increase of 30.1% [5] - The company’s sales volumes for POY, FDY, and DTY in Q2 2025 were 1.44 million tons, 450,000 tons, and 250,000 tons, representing year-on-year increases of 16.0%, 19.7%, and 32.3% respectively [6] - The company is optimistic about the price elasticity of polyester filament as the peak season approaches, with expectations of demand recovery [6] Financial Performance Summary - The company’s gross margin and net margin for Q2 2025 were 6.4% and 2.1%, respectively, with year-on-year increases of 0.2 percentage points [6] - The company’s net profit forecast for 2025-2027 is 1.486 billion yuan, 1.852 billion yuan, and 2.172 billion yuan, representing year-on-year growth rates of 35.0%, 24.6%, and 17.3% respectively [8] - The company’s operating income is projected to reach 71.318 billion yuan in 2025, with a year-on-year growth of 6.3% [8] Strategic Initiatives - The company is actively entering the bio-based materials sector, planning to invest 100 million yuan in a partnership with Lif Bio to explore applications in high-end bio-based fibers and green packaging [6] - The company aims to enhance its competitiveness in traditional industries while pursuing sustainable development paths [6]