YYTH(SH:600096) Guohai Securities·2024-08-15 11:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profitability demonstrates resilience, supported by its leading phosphate resource advantages [1] - Despite a decline in revenue, the company achieved a year-on-year increase in net profit due to a greater decrease in raw material prices compared to product prices [2][5] - The company is expected to maintain strong performance in the upcoming quarters, particularly with the arrival of the autumn fertilization peak season [5] Financial Performance Summary - In the first half of 2024, the company reported a net profit attributable to shareholders of 28.41 billion yuan, a year-on-year increase of 6.10% [2] - The company's revenue for the first half of 2024 was 319.93 billion yuan, a year-on-year decrease of 9.16% [2] - The gross profit margin improved to 14.69%, reflecting a year-on-year increase [2] - The return on equity (ROE) was 16.61%, up by 1.49 percentage points year-on-year [1] Segment Performance - The revenue from diammonium phosphate reached 64.73 billion yuan, a year-on-year increase of 0.87%, with a gross margin of 33.88% [3] - The revenue from compound fertilizers increased by 23.45% year-on-year to 29.48 billion yuan, with a gross margin of 12.98% [3] - The average selling price of ammonium phosphate was 3,436 yuan/ton, while the average selling price of urea was 2,176 yuan/ton, reflecting a year-on-year decrease of 13.83% [2][3] Resource and Market Position - The company holds phosphate reserves of nearly 800 million tons, making it one of the largest phosphate mining enterprises in China [6] - The company has secured exploration rights for a phosphate mine in Zhenxiong County, which will enhance its resource security [7] - The company is projected to achieve revenues of 722 billion yuan in 2024, with net profits of 50.38 billion yuan, corresponding to a PE ratio of 7.38 [8]