Shenwan Hongyuan Research: Maintains "buy" rating on satellite chemicals, continues to be optimistic about the growth of the C2 sector.

Shenwan Hongyuan Research Report pointed out that Satellite Chemical is expected to achieve a net profit attributable to the mother of 2.7-3.15 billion yuan, a year-on-year increase of 31.32%-53.2%; among them, it is expected to achieve a net profit attributable to the mother of 1.13-1.58 billion yuan in the second quarter of 25Q2, a year-on-year increase of 9%-53%, a month-on-month decrease of -28%-1%. The performance basically meets our expectations. The central month-on-month performance of the company in the second quarter of 25Q2 has declined, mainly judged to be due to the narrowing price difference of some products brought about by the downward trend of oil prices in the second quarter, as well as certain cost increases brought about by the maintenance of PDH unit. The impact of ethane tariffs in the second quarter of 25Q2 is limited, and the C2 price difference is relatively firm. In terms of product price differences, the price differences between ethane ethylene, styrene and ethylene glycol in 25Q2 are 567 USD/ton, 823 yuan/ton, and 393 yuan/ton respectively, month-on-month changes -43 USD/ton, +499 yuan/ton, +126 yuan/ton respectively. The company's future growth mainly relies on the high-end new materials industrial park project of -olefin comprehensive utilization. The third phase of the project is expected to be completed and put into production in the second half of 2026, gradually realizing performance from 2026 to 2027, while the fourth phase of the project is delayed due to the impact of Sino-US trade. I continue to be optimistic about the growth potential of the company's C2 sector and the recovery of the C3 sector, and maintain a "buy" rating.