Investment Rating - The report maintains a "Buy-A" rating for the company [2][7] Core Insights - The company reported a revenue of 14.715 billion yuan for H1 2025, a year-on-year increase of 7.56%, and a net profit of 1.104 billion yuan, up 5.04% year-on-year [3] - The growth in revenue and profit is attributed to the strong performance of the core business segment, which generated 10.107 billion yuan in revenue, a 29.9% increase year-on-year, and a profit contribution of 719 million yuan, up 53.3% year-on-year [4] - The company is focusing on optimizing its differentiated product structure, with a notable increase in sales of its "Bio+" high-end products, which saw a 51% year-on-year growth [5] Financial Performance - The company achieved a basic earnings per share (EPS) of 0.17 yuan and a diluted EPS of 0.17 yuan [2] - The net asset return rate (ROE) stands at 10.27% [2] - The projected net profits for 2025, 2026, and 2027 are 1.352 billion yuan, 1.483 billion yuan, and 1.599 billion yuan, respectively, with corresponding price-to-earnings (PE) ratios of 6.6, 6.1, and 5.6 [7] Business Segments - The core business segment's revenue growth is driven by strategic procurement optimization and the promotion of biological phosphate and potassium fertilizers, which effectively reduced overall fertilizer costs [4] - The growth business segment contributed 7.753 billion yuan in revenue, a 4.4% increase year-on-year, with a profit contribution of 420 million yuan, up 5.4% year-on-year [4] - The production business segment generated 3.202 billion yuan in revenue, an 8.4% increase year-on-year, but saw a profit decline of 15.6% due to rising raw material prices and a drop in urea market prices [4]
中化化肥（00297）：中化化肥（00297.HK）买入-A（维持）