BATIAN(SZ:002170) Changjiang Securities·2025-06-12 09:44Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][8]. Core Viewpoints - The company is a high-quality phosphate chemical enterprise with a stable compound fertilizer business and rapid expansion of phosphate mining capacity, which is expected to drive performance growth [3][8]. - The projected net profits for 2025-2027 are estimated at 1.28 billion, 1.44 billion, and 1.56 billion yuan respectively [3][8]. Company Overview - The company has over 30 years of experience in compound fertilizer and is the first listed company in this sector. It focuses on the research, production, and sales of compound fertilizers, forming a synergistic development pattern with phosphate chemicals [5][18]. - The company has obtained mining rights for the Xiaogaozhai phosphate mine, with an annual production capacity of 2 million tons of phosphate ore and an additional 900,000 tons under construction [5][18]. - The company has a clear shareholding structure, and its revenue has been steadily increasing, with the contribution from phosphate mining continuing to rise [5][26]. Phosphate Mining - Phosphate ore is a strategic resource and is essential for the phosphate chemical industry, primarily used in fertilizers and various industrial applications [6][43]. - The global distribution of phosphate resources is uneven, and China has a relatively low phosphate ore reserve-to-production ratio, leading to its classification as a strategic mineral resource [6][49]. - The value of phosphate ore has been steadily increasing, with the price per ton rising from approximately 0.2 tons of corn in the 1960s to about 1.0 ton of corn in recent years [6][62]. Compound Fertilizer Business - The compound fertilizer industry in China has a stable demand, with annual consumption fluctuating around 50 million tons [7][18]. - The industry is experiencing consolidation, with leading companies expanding their competitive advantages through technology and supply chain integration [7][18]. - The company is one of the major producers of compound fertilizers in China, leveraging its high-quality phosphate resources to enhance its competitive position [7][18]. Financial Performance - The company's revenue for 2024 is projected to be 3.31 billion yuan, with a year-on-year growth of 2.1%, and a net profit of 410 million yuan, reflecting a significant increase of 57.7% [26][40]. - The contribution from phosphate mining has been substantial, with gross profit from this segment reaching 590 million yuan in 2024, accounting for 64.4% of total gross profit [26][40]. - The company has a generous dividend policy, planning to distribute at least 60% of its cumulative profits as dividends from 2024 to 2026, with a projected dividend of 270 million yuan for 2024 [26][40].