YYTH(SH:600096) Huaxin Securities·2025-08-22 06:18Investment Rating - The report maintains a "Buy" investment rating for the company [9] Core Views - The company focuses on its core business, leading to a reduction in trade revenue and a year-on-year decrease in total revenue by 21.88% in the first half of 2025 [5] - The company has significant phosphate reserves of nearly 800 million tons and has enhanced its production capabilities across various phosphate products [5][7] - Financial expenses have decreased due to a reduction in interest-bearing debt, contributing to improved profitability [6] Summary by Sections Financial Performance - In the first half of 2025, the company achieved total revenue of 24.992 billion yuan, a decrease of 21.88% year-on-year, while net profit attributable to shareholders was 2.761 billion yuan, down 2.81% year-on-year [4] - In Q2 2025, the company reported a single-quarter revenue of 11.988 billion yuan, a year-on-year decrease of 33.90% and a quarter-on-quarter decrease of 7.82%, with net profit of 1.472 billion yuan, an increase of 6.52% year-on-year and 14.15% quarter-on-quarter [4] Production and Capacity - The company has a raw ore production capacity of 14.5 million tons per year and a washing and flotation production capacity of 6.18 million tons and 7.5 million tons per year, respectively [5] - The company produced 5.84 million tons of finished phosphate rock, a slight increase of 0.8% year-on-year, while production of various phosphate fertilizers decreased by 2.2% [5] Future Outlook - The company is expected to see profit growth driven by rapid capacity release, with projected net profits of 5.867 billion yuan, 6.079 billion yuan, and 6.250 billion yuan for 2025, 2026, and 2027, respectively [9] - The current stock price corresponds to a price-to-earnings ratio (PE) of 8.3, 8.0, and 7.8 for the years 2025, 2026, and 2027, indicating attractive investment value [9]