STANLEY(SZ:002588) Guohai Securities·2024-11-12 12:30Investment Rating - The report maintains a "Buy" rating for the company [1][6][12] Core Views - The company's Q3 performance was impacted by declining raw material prices, leading to a decrease in profits. However, there is optimism regarding the growth of compound fertilizer sales and profitability [2][5][6] - The company reported a revenue of 7.879 billion yuan for the first three quarters of 2024, a year-on-year increase of 3.64%, and a net profit attributable to shareholders of 664 million yuan, up 14.61% year-on-year [2][6] - The company is actively advancing its phosphate chemical projects, which are expected to enhance the supply capacity of phosphate fertilizer raw materials and reduce production costs [5][6] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 2.206 billion yuan, a year-on-year decrease of 8.05%, and a net profit of 154 million yuan, down 14.88% year-on-year. The decline was attributed to a drop in sales volume and a decrease in overall gross margin [2][4] - The average gross profit margin for Q3 was 17.21%, down 2.33 percentage points year-on-year, while the net profit margin was 6.59%, down 1.41 percentage points year-on-year [2][4] Market Data - As of November 11, 2024, the company's stock price is 7.50 yuan, with a market capitalization of approximately 8.639 billion yuan [2][6] - The company has a total share capital of 1.152 billion shares, with a circulating share capital of approximately 1.020 billion shares [2][6] Future Outlook - The company is projected to achieve revenues of 10.3 billion yuan, 12 billion yuan, and 12.8 billion yuan for the years 2024, 2025, and 2026, respectively, with net profits of 793 million yuan, 917 million yuan, and 1.058 billion yuan [6][12] - The report highlights the company's competitive advantages in brand strength, marketing channel development, new product research and development, and agricultural services [6][12]