YYTH(SH:600096)2024-10-15 08:03Investment Rating - The report maintains an "Outperform" rating for Yunnan Yuntianhua [3][4][12] Core Views - The recurring net profit increased by 21.42% year-on-year during the first three quarters of 2024, with total operating revenue of RMB 46.724 billion, down 12.34% year-on-year [2][8] - The company acquired minority shareholding in Phosphate Group, enhancing its control over the subsidiary [10][12] - The profit growth is attributed to rising phosphate fertilizer prices, decreased bulk raw material prices, and improved financial management [8][11] Financial Performance Summary - For the first three quarters of 2024, the company achieved a net profit of RMB 4.345 billion, with a significant increase in Q3 net profit of RMB 1.555 billion, up 55.40% year-on-year [2][8] - The company’s Q3 operating income was RMB 14.731 billion, reflecting a decline of 18.54% year-on-year [8] - The company expects net profits for 2024-2026 to be RMB 5.109 billion, RMB 5.253 billion, and RMB 5.323 billion respectively, with corresponding EPS of RMB 2.79, RMB 2.86, and RMB 2.90 [12][6] Product Performance - Ammonium phosphate production was 3.729 million tonnes with sales of 3.592 million tonnes, generating RMB 12.106 billion in revenue, a 1.43% increase year-on-year [9] - Compound fertilizer production was 1.364 million tonnes with sales of 1.372 million tonnes, resulting in RMB 4.029 billion in revenue, a 15.20% increase year-on-year [9] - Urea production was 2.035 million tonnes with sales of 2.048 million tonnes, leading to RMB 4.339 billion in revenue, a decrease of 1.36% year-on-year [9] Strategic Developments - The company is focusing on developing high-value-added inorganic fluoride and fluoropolymers, with established production capacities for iron phosphate and hydrofluoric acid [11][4] - The company plans to enhance its phosphate resource utilization, particularly in Zhenxiong phosphate resources, expecting to gain mining rights in the next two to three years [11][4]