Asia-Potash(SZ:000893)2024-11-06 00:23Investment Rating - The report maintains an "OUTPERFORM" rating for the company [1][4]. Core Insights - The company's recurring net profit increased by 31.88% quarter-on-quarter in Q3 2024, while total operating revenue for the first three quarters of 2024 was RMB 2.483 billion, a year-on-year decrease of 14.13% [2][9]. - The company is the largest potash resource enterprise in Asia, with significant reserves and production capabilities, having successfully launched multiple potash projects [3][11]. - The company has established a diversified sales system, enhancing its market presence both domestically and internationally [12]. Financial Performance Summary - In Q3 2024, the company achieved total operating revenue of RMB 785 million, a year-on-year decrease of 9.71%, but net profit after deductions increased by 31.88% [2][10]. - The gross margin for sales in Q3 2024 was 49.26%, up 2.6 percentage points from the previous quarter, while the net margin was 30.67%, an increase of 13.58 percentage points [10]. - The company’s projected net profits for 2024-2026 are RMB 764 million, RMB 1.242 billion, and RMB 1.692 billion, respectively, reflecting a significant decline due to falling potassium chloride prices [4][13]. Production and Market Position - The company has a total potassium chloride production capacity of 1 million tonnes per year, with successful operations of multiple projects [3][11]. - The company has expanded its market reach, establishing partnerships with global firms and entering new markets in Africa, the Middle East, and Europe [12].