YYTH(SH:600096) Huaan Securities·2024-08-15 02:10Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported stable growth in its performance for the first half of 2024, with a slight decrease in revenue due to lower prices of major products, while maintaining profitability [4][6] - The company has a strong integrated advantage in the phosphate chemical industry, which supports stable earnings from its main products [7] - The overall demand for phosphate remains stable, with prices maintaining a high level, despite some fluctuations in the international market [8] Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 31.993 billion yuan, a year-on-year decrease of 9.16%, while the net profit attributable to shareholders was 2.841 billion yuan, an increase of 6.10% [4] - For Q2 2024, the company reported revenue of 18.136 billion yuan, a year-on-year decrease of 6.19%, but a quarter-on-quarter increase of 30.88% [4] - The company effectively managed costs, with a decrease in operating costs by 10.75% year-on-year, leading to a net profit of 1.382 billion yuan for Q2, up 25.07% year-on-year [4][9] Market Conditions - The phosphate fertilizer industry is experiencing stable demand, with the market price for phosphate rock remaining high at 1,009.42 yuan/ton in Q2 2024 [6] - The domestic prices for major products like diammonium phosphate and monoammonium phosphate have remained stable, with slight fluctuations observed [8] Strategic Advantages - The company benefits from a "mining integration" strategy and has a significant phosphate reserve and annual mining capacity, positioning it well for future growth [7] - Recent government policies aimed at promoting efficient and high-value utilization of phosphate resources are expected to support the industry's transformation and upgrade [7] Profitability Forecast - The company is projected to achieve net profits of 4.853 billion yuan, 5.145 billion yuan, and 5.446 billion yuan for 2024, 2025, and 2026 respectively, with corresponding growth rates of 7.3%, 6.0%, and 5.9% [10][12]