Xingfa Chem(600141) 华鑫证券·2025-05-22 14:37Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [8]. Core Insights - The company reported a revenue of 7.228 billion yuan in Q1 2025, reflecting a year-on-year increase of 4.94% and a quarter-on-quarter increase of 13.90%. However, the net profit attributable to shareholders was 311 million yuan, showing a year-on-year decline of 18.61% but a quarter-on-quarter increase of 8.19% [1]. - A new phosphate mining project with an annual capacity of 4 million tons is expected to commence production in 2025, which will serve as a new profit growth point for the company [2]. - The company is focusing on enhancing shareholder returns, with a cash dividend of 1 yuan per share for 2024, resulting in a dividend yield of 4.61% [4]. - The company has a strong market position in yellow phosphorus production, with an annual capacity exceeding 160,000 tons, and is advancing in the commercialization of black phosphorus products [2]. - The company is also managing its market value effectively, with its second-largest shareholder planning to increase holdings by 220 million to 440 million yuan [2]. Financial Summary - The company’s sales expense ratio for Q1 2025 was 0.79%, a decrease of 0.32 percentage points year-on-year and 0.90 percentage points quarter-on-quarter. The management expense ratio was 4.35%, showing a slight increase of 0.05 percentage points year-on-year but a decrease of 4.48 percentage points quarter-on-quarter. The financial expense ratio was 1.38%, up 0.09 percentage points year-on-year and 0.20 percentage points quarter-on-quarter. The R&D expense ratio was 3.05%, down 0.03 percentage points year-on-year and 2.36 percentage points quarter-on-quarter [3]. - The company forecasts net profits attributable to shareholders of 1.628 billion yuan in 2025, 1.867 billion yuan in 2026, and 2.138 billion yuan in 2027, with corresponding price-to-earnings ratios of 14.0, 12.2, and 10.7 times [8].