Huaxin Securities: Give Satellite Chemical a "buy" rating, new projects are steadily progressing, with ample room for growth.

Huaxin Securities Research Report pointed out that Satellite Chemical's non-GAAP net profit showed steady growth, with outstanding performance in functional chemicals. In 2025, the company's operating income remained stable, but its net profit attributable to the parent company decreased year-on-year, mainly due to the fair value changes and disposal gains and losses of financial assets and financial liabilities held by non-financial enterprises, resulting in a total loss of approximately 12.05 billion yuan. In addition, the company actively explored overseas markets, with overseas business achieving revenue of 7.772 billion yuan, a year-on-year increase of 39.96%, becoming an important growth point. In terms of cash flow, the net cash flow generated from operating activities was 9.607 billion yuan, a decrease of 9.29% compared to the same period, but still remained strong, providing solid support for the company's projects under construction and research and development investments. In the future, with the gradual implementation of high-end new materials projects such as Lianyungang -olefin comprehensive utilization, the company will further connect the industrial chain of "basic chemicals-high-end new materials," opening up long-term growth potential. The company is a leading domestic integrated light hydrocarbon enterprise, with significant cost advantages, steady progress in new projects, and broad growth space. It is predicted that the company's net profit attributable to the parent company for 2026-2028 will be 7.406 billion yuan, 8.681 billion yuan, and 10.215 billion yuan respectively, with corresponding PE ratios of 11.7, 10.0, and 8.5 times, giving a "buy" investment rating.