STANLEY(002588) 海通国际·2024-08-20 06:30Investment Rating - The report maintains an "OUTPERFORM" rating for Stanley Agriculture Group with a target price of Rmb8.45, based on a 2024 P/E ratio of 12.43x [1][8]. Core Insights - In 2024H1, the recurring net profit increased by 15.19% year-over-year (YOY), with operating income reaching Rmb5.672 billion, a 9.04% YOY increase. The net profit attributable to shareholders (NPAtS) was Rmb510 million, up 27.98% YOY [1][4]. - The growth in performance is primarily attributed to increased product sales, particularly in the horticultural fertilizer segment, which saw retail sales of Rmb66.03 million, a 25.50% YOY increase, and a cumulative sales volume of 2.6 million pieces, up 32.65% YOY [4][5]. - The company plans to build a new 1 million tonnes green fertilizer project, investing Rmb533.77 million through self-funding or bank financing, which is expected to enhance production efficiency and competitive advantage in the South China, Southwest China, and Southeast Asia markets [7][8]. Financial Performance Summary - For 2024H1, the gross profit margin improved to 18.59%, an increase of 1.39 percentage points. The operating income from sulfur-based compound fertilizers was Rmb1.161 billion, with a gross profit margin of 17.66%, while chlorine-based compound fertilizers generated Rmb3.247 billion with a gross profit margin of 18.75% [5][6]. - The company forecasts EPS of Rmb0.68 for 2024, Rmb0.77 for 2025, and Rmb0.90 for 2026, maintaining a consistent growth trajectory [8].