HBYH(000422) 华创证券·2025-04-03 10:14Investment Rating - The report maintains a "Strong Buy" rating for Hubei Yihua, with a target price of 16.05 yuan [1]. Core Views - The company is expected to complete and upgrade its industrial chain layout, awaiting a profit turning point. In 2024, the company achieved a revenue of 16.964 billion yuan, a slight decrease of 0.48% year-on-year, while the net profit attributable to shareholders increased by 44.32% to 653 million yuan [1][4]. - The company plans to distribute a cash dividend of 2.0 yuan per 10 shares, totaling 217 million yuan, which accounts for 33.2% of the net profit [1]. Financial Performance Summary - In 2024, the company's fertilizer products generated revenue of 7.653 billion yuan, accounting for 45.1% of total revenue, with a year-on-year decrease of 1.34%. Diammonium phosphate revenue was 4.879 billion yuan, up 6.87% year-on-year, while urea revenue was 2.773 billion yuan, down 13.08% year-on-year [8]. - The chemical products segment generated revenue of 7.472 billion yuan, down 5.65% year-on-year, with a gross margin of 6.93%, an increase of 1.51 percentage points year-on-year [8]. - The company has two major ongoing projects, with progress rates of 63.4% and 53% respectively by the end of 2024, aimed at optimizing and upgrading traditional chemical fertilizer sectors [8]. - The company announced plans to acquire 100% equity of Yichang Xinfatou from its major shareholder, which holds a 39.4% stake in Xinjiang Yihua, further enhancing its product scale and upstream advantages [8]. Financial Forecast Summary - The forecast for total revenue is projected to grow to 18.401 billion yuan in 2025, with a year-on-year growth rate of 8.5%. The net profit attributable to shareholders is expected to reach 964 million yuan, reflecting a growth rate of 47.7% [4][9]. - The earnings per share (EPS) is projected to increase from 0.60 yuan in 2024 to 0.89 yuan in 2025, with a price-to-earnings (P/E) ratio decreasing from 23 to 15 [4][9].