YYTH(SH:600096) Huaxin Securities·2025-03-27 13:03Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [9]. Core Insights - The company has shown a year-on-year increase in the sales volume of urea and compound fertilizer products for 2024, despite a decline in overall revenue due to falling soybean prices [5][4]. - The company's net profit attributable to shareholders increased by 17.93% year-on-year, reaching 5.33 billion yuan in 2024 [4]. - The company aims to become a world-class provider of fertilizers, modern agriculture, and fine chemical products, focusing on cost leadership and resource advantages [8]. Financial Performance - In 2024, the company achieved an operating revenue of 61.54 billion yuan, a decrease of 10.89% year-on-year, while the net profit attributable to shareholders was 5.33 billion yuan, an increase of 17.93% [4]. - The company’s financial expenses decreased significantly by 30.52% due to a reduction in interest-bearing liabilities [6]. - The company forecasts net profits of 5.49 billion yuan, 5.78 billion yuan, and 6.17 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 7.9, 7.5, and 7.0 [9][11]. Product Performance - The company reported significant increases in the production and sales of urea and compound fertilizers, with urea production rising by 9.87% to 2.82 million tons and sales increasing by 10.57% to 2.75 million tons [5]. - The production of compound fertilizers reached 1.78 million tons, up 13.17%, while sales increased by 16.9% to 1.82 million tons [5]. Future Outlook - The company is expected to benefit from capacity enhancements, with ammonia production capacity increasing from 500,000 tons/year to 580,000 tons/year through technological upgrades [7]. - The company plans to expand its new energy battery materials sector, focusing on integrated projects for iron phosphate and new energy batteries [8].