YYTH(600096) 华金证券·2024-09-06 13:00Investment Rating - The investment rating for the company is "Buy-B" [1][2]. Core Views - The company has demonstrated stable growth in performance, with a notable integrated advantage in its operations. The revenue for the first half of 2024 was 31.993 billion yuan, a decrease of 9.16% year-on-year, while the net profit attributable to shareholders increased by 6.10% year-on-year to 2.841 billion yuan [1][2]. - The company maintains a strong operational strategy focused on high load, quick turnover, and risk mitigation, which has resulted in stable production and sales of its main products [1]. - The company benefits from a robust supply chain and strategic procurement advantages, leading to a decrease in the cost of major raw materials such as sulfur and coal, effectively offsetting adverse price fluctuations [1][2]. Financial Performance Summary - For the first half of 2024, the company achieved a gross margin of 16.61%, an increase of 1.49 percentage points year-on-year. The second quarter of 2024 saw a revenue of 18.136 billion yuan, a year-on-year decrease of 6.19% but a quarter-on-quarter increase of 30.88% [1]. - The company plans to produce and sell 2.5449 million tons of urea, 4.5415 million tons of ammonium phosphate, and 1.9251 million tons of compound fertilizer in 2024 [1][2]. - The company’s total fertilizer production capacity is 10 million tons per year, making it one of the largest fertilizer producers in China [2]. Industry Insights - The company is one of the largest phosphate mining enterprises in China, with a current phosphate ore reserve of nearly 800 million tons and an annual production capacity of 14.5 million tons [2]. - The domestic phosphate industry is characterized by high concentration and integration levels, with a stable supply-demand relationship expected to continue in the coming years [1][2]. - The market price for phosphate ore is expected to remain high, with overall demand maintaining stability [1][2].