Chanhen(002895) 光大证券·2024-08-29 09:44Investment Rating - The report maintains a "Buy" rating for Chuanhua Co Ltd (002895 SZ) [2] Core Views - Chuanhua Co Ltd's phosphochemical business revenue grew significantly, with continued expansion in upstream phosphate rock resource layout [2] - The company's H1 2024 performance showed substantial growth, with revenue increasing by 32 1% YoY to 2 484 billion yuan and net profit attributable to parent company growing by 29 4% YoY to 354 million yuan [3] - The company plans to acquire 58 5% equity of Qianyuan Geological Exploration Co Ltd for 827 5 million yuan, further expanding its phosphate rock resource layout [4] - Chuanhua Co Ltd intends to change the use of convertible bond funds to promote the expansion of Xiaoba Phosphate Mine's production capacity from 500 000 tons/year to 800 000 tons/year [5] Financial Performance - In H1 2024, the company's phosphochemical business achieved revenue of 2 275 billion yuan, a 30 1% YoY increase, with a gross margin of 28 7% [4] - The phosphate rock mining business generated revenue of 210 million yuan in H1 2024, a 59 8% YoY increase, with a gross margin of 81 8% [4] - The company's subsidiary, Fulin Mining, achieved phosphate rock mining volume of 1 464 million tons in H1 2024, with revenue of 594 million yuan and net profit of 273 million yuan [4] - The company's operating income is expected to grow from 5 196 billion yuan in 2024E to 7 661 billion yuan in 2026E, with net profit attributable to parent company projected to increase from 934 million yuan to 1 799 billion yuan during the same period [6] Business Development - The company's phosphate product revenue increased by 78 3% YoY in H1 2024, mainly due to the further release of production capacity at the Guangxi base [4] - The Xiaoba Phosphate Mine expansion project is expected to generate annual sales revenue of 320 million yuan and profit of 122 million yuan after reaching design capacity [5] - The Qianyuan Geological Exploration Co Ltd acquisition is expected to bring annual sales revenue of 694 million yuan and profit of 216 million yuan after reaching full production [4] Valuation and Projections - The company's EPS is projected to grow from 1 72 yuan in 2024E to 3 32 yuan in 2026E [6] - ROE (attributable to parent company) is expected to increase from 15 18% in 2024E to 22 20% in 2026E [6] - The company's P/E ratio is forecasted to decrease from 10 in 2024E to 5 in 2026E, while P/B ratio is expected to decline from 1 5 to 1 1 during the same period [6] Industry and Market Position - The company continues to expand its upstream phosphate rock resource layout and improve its phosphochemical integrated industrial chain [5] - The company's market capitalization stands at 9 122 billion yuan, with a total share capital of 542 million shares [2] - The stock's 1-year low/high range is 12 56 yuan to 22 54 yuan, with a 3-month turnover rate of 54 42% [2]