YYTH(SH:600096) CSC SECURITIES (HK) LTD·2025-03-26 10:23Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside in the stock price [6][12]. Core Insights - The company reported a revenue of 61.54 billion RMB for 2024, a year-over-year decrease of 10.89%, while net profit increased by 17.93% to 5.33 billion RMB, primarily due to an improvement in gross margin [7]. - The company announced a dividend of 1.4 RMB per share, resulting in a dividend payout ratio of 48.15%, which is an increase from 40.56% in 2023, reflecting a strong commitment to shareholder returns [7][13]. - The company is focusing on its core chemical business, reducing the proportion of low-margin trading activities, which has positively impacted its gross margin [8]. Financial Performance - The company achieved a gross margin of 17.50%, an increase of 2.32 percentage points year-over-year, supported by stable prices for phosphate products and a decrease in raw material costs [8]. - The revenue from the phosphate fertilizer segment was 15.73 billion RMB, with a slight decrease in sales volume but an increase in average selling price [8]. - The company’s net profit is projected to grow steadily, with estimates of 5.57 billion RMB for 2025 and 5.94 billion RMB for 2026, reflecting a year-over-year growth of 4.60% and 6.56% respectively [11][13]. Market Position and Outlook - The company is a leading player in the domestic phosphate and fertilizer industry, benefiting from its integrated operations and resource advantages [7]. - The report anticipates that fertilizer prices may rise during the spring planting season, which could further enhance the company's profitability [8]. - The company’s focus on optimizing its business structure and reducing debt levels is expected to improve its financial health and operational efficiency [8].