Investment Rating - The report maintains an "Accumulate" rating for Sinofert Holdings, with a target price of HKD 1.67 based on a PE of 5.3x for 2025 [5][13]. Core Insights - In 2025H1, the net profit attributable to the parent company increased by 5.04% year-on-year, with total revenue reaching CNY 14.715 billion, a 7.56% increase [15]. - The company is actively promoting its "Bio+" strategy, focusing on R&D capabilities and innovation, resulting in the development of four new bio-products and a 14% increase in scientific research achievement conversion [2][12]. - The basic business division's profit increased by 53% year-on-year, driven by enhanced supply capabilities and a 12% increase in average sales price [4][15]. - The growth business segment's profit rose by 5.4% year-on-year, with differentiated compound fertilizers sales increasing by 6% and "Bio+" A-class compound fertilizers sales up by 51% [4][15]. - The production business division saw a profit decrease of 16% year-on-year, primarily due to challenges faced by specific subsidiaries [4][15]. Financial Summary - The projected net profits for Sinofert Holdings are CNY 2.056 billion, CNY 2.297 billion, and CNY 2.636 billion for 2025, 2026, and 2027 respectively [5][13]. - The company expects a revenue increase of 25% in 2025, followed by 13% and 14% in the subsequent years [6]. - The earnings per share (EPS) is projected to be CNY 0.29 in 2025, with a P/E ratio decreasing from 7.43 in 2024 to 4.43 in 2025 [6].
中化化肥（00297）：25H1归母净利润同比增长5.04%，钾肥量利贡献提升