BATIAN(SZ:002170) Haitong Securities International·2025-04-25 08:05Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of RMB 12.90, representing a potential upside of 69% from the current price [4][7]. Core Insights - The company's net profit attributable to shareholders is expected to reach RMB 1.25 billion, 1.52 billion, and 1.79 billion for the years 2025-2027, with corresponding EPS of RMB 1.29, 1.58, and 1.86 [4][7]. - In 2024, the company is projected to achieve a revenue of RMB 3.31 billion, a year-on-year increase of 2.15%, with a net profit of RMB 409 million, up 57.67% year-on-year [4][7]. - The expansion of phosphate rock capacity is anticipated to enhance profit margins significantly, with a gross profit margin of 83.67% expected from phosphate rock sales [8]. Financial Data and Forecast - The company's revenue is forecasted to grow from RMB 3,244 million in 2023 to RMB 8,651 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 33% [3][6]. - Net profit is projected to increase from RMB 259 million in 2023 to RMB 1,792 million in 2027, indicating a substantial growth trajectory [3][6]. - The company plans to maintain a dividend payout ratio of approximately 65.94% in 2025, with a proposed cash dividend of RMB 2.80 per 10 shares [4][7]. Expansion Plans - The company is investing RMB 280 million in the expansion of the Xiaogaozhai phosphate mine, which will increase its capacity to 2.9 million tons per year [8]. - The expansion includes the second phase of physical ore dressing, which will add an additional 600,000 tons per year, bringing the total to 1.2 million tons per year [8]. - The introduction of 5G technology for smart mine upgrades is also part of the expansion strategy, aimed at improving operational efficiency [8].