Asia-Potash(SZ:000893)2024-11-01 08:02Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company reported a Q3 2024 revenue of 2.483 billion yuan, a year-on-year decline of 14.13%, and a net profit attributable to shareholders of 518 million yuan, down 47.89% year-on-year. However, Q3 net profit showed a quarter-on-quarter increase of 31.46% [2]. - Cost reduction and a slight rebound in potassium chloride prices contributed to improved profitability in Q3. The company’s potassium chloride production and sales volumes for the first three quarters of 2024 were 1.3237 million tons and 1.2414 million tons, respectively, representing year-on-year growth of 12.49% and 4.31% [2][3]. - The construction of the 2 and 3 main shaft projects is progressing steadily, with the company aiming for an annual production target of 1.8 to 2 million tons. The company expects to achieve a daily production capacity of 8,000 to 9,000 tons once either of the two projects is operational [3]. - The company has received a strategic investment from Huineng Group, which acquired 9.01% of the company’s shares, indicating confidence in the company’s long-term development prospects [3]. Financial Summary - The company’s revenue for 2023 is projected at 3.898 billion yuan, with a forecasted decline to 3.707 billion yuan in 2024, followed by significant growth to 5.716 billion yuan in 2025 and 7.755 billion yuan in 2026 [5]. - The net profit attributable to shareholders is expected to decrease to 779 million yuan in 2024, with a recovery to 1.135 billion yuan in 2025 and 1.579 billion yuan in 2026 [5]. - The earnings per share (EPS) are projected to be 0.84 yuan in 2024, 1.22 yuan in 2025, and 1.70 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 22.90, 15.71, and 11.30 [4][5].