Investment Rating - The report maintains an "Outperform" rating for China XLX Fertiliser [2][8]. Core Insights - In the first half of 2024, the company achieved a net profit attributable to shareholders of RMB 687 million, representing a year-on-year increase of 25.78%. The total operating revenue was RMB 12.178 billion, up 0.26% year-on-year [5][6]. - The growth in net profit was primarily driven by a rebound in the chemicals market and improved performance of wholly-owned subsidiaries. The company has optimized production processes and controlled energy consumption, leading to a gross margin of 19.53%, an increase of 2.03 percentage points year-on-year [5][6]. - The company sold its 100% equity interest in Tianxin Coal Mine for RMB 1.374 billion, which will no longer hold equity interests in the coal industry post-transfer [7][8]. Financial Summary - The company’s sales revenue by product in the first half of 2024 includes: 1. Finished urea: RMB 3.834 billion, up 9% YoY, with a gross margin of 31% [6]. 2. Automotive urea solution: RMB 166 million, down 26% YoY, with a gross margin of 18% [6]. 3. Compound fertilizer: RMB 3.410 billion, up 6% YoY, with a gross margin of 18% [6]. 4. Methanol: RMB 1.291 billion, up 32% YoY, with a gross margin of 8% [6]. 5. Melamine: RMB 397 million, down 4% YoY, with a gross margin of 30% [6]. 6. DMF: RMB 595 million, up 14% YoY, with a gross margin of 13% [6]. - The company’s earnings per share (EPS) forecast for 2024-2026 is RMB 1.18, 1.28, and 1.42 respectively, with a target price of HKD 5.16 based on a PE ratio of 4.02 [8]
中国心连心化肥：2024H1母公司拥有人应占溢利同比增长25.78%，公司出售天欣矿业100%股权