Xingfa Chem(600141) 长城证券·2024-11-01 02:51Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [18]. Core Views - The company's performance in the first three quarters of 2024 shows continuous improvement, with revenue reaching 22.05 billion yuan, a year-on-year increase of 0.04%, and net profit attributable to shareholders at 1.314 billion yuan, up 37.85% year-on-year [1][2]. - The increase in profitability is primarily driven by strong performance in key products such as phosphate rock and specialty chemicals, which have maintained good profit margins [2][4]. - The average price of phosphate rock remains high, with a market average of 1,017.03 yuan/ton in Q3 2024, reflecting a year-on-year increase of 13.85% [4][6]. Financial Performance Summary - Revenue for 2024 is projected to be 29.97 billion yuan, with a year-on-year growth rate of 6.6%, and net profit is expected to reach 1.743 billion yuan, reflecting a growth rate of 26.4% [1][12]. - The company's gross profit margin for the first three quarters of 2024 is reported at 17.96%, an increase of 4.82 percentage points compared to the same period last year [2]. - The net profit margin for the first three quarters of 2024 is 6.02%, up 1.56 percentage points from the previous year [2]. Product and Market Insights - The company has seen significant increases in production and sales across multiple product lines, with production volumes for organic silicon, specialty chemicals, and fertilizers increasing by 62.98%, 119.35%, and 19.27% respectively in the first three quarters of 2024 [4][6]. - The average prices for organic silicon, specialty chemicals, and fertilizers have shown varied trends, with organic silicon prices decreasing by 9.43% year-on-year, while fertilizer prices increased by 6.07% [6][4]. Future Growth Potential - The upcoming IPO of the subsidiary, Xingfu Electronics, is expected to enhance the company's market competitiveness and provide new profit growth points, with significant production capacity in electronic-grade chemicals [7]. - The company is projected to achieve revenues of 29.97 billion yuan in 2024, increasing to 32.41 billion yuan by 2026, with corresponding net profits expected to rise from 1.743 billion yuan in 2024 to 2.548 billion yuan in 2026 [8][12].