Xingfa Chem(SH:600141) Guohai Securities·2025-09-09 05:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady performance in Q2, with a revenue increase of 13.44% year-on-year and a net profit of 4.16 billion yuan, despite a slight decline in net profit margin [4][5] - The acquisition of a 50% stake in Qiaogou Mining will enhance the company's phosphate resource advantages, increasing its mining rights reserves from 3.95 billion tons to 5.80 billion tons [11][12] - The company is expected to achieve revenue growth in the coming years, with projected revenues of 297 billion yuan in 2025, 319 billion yuan in 2026, and 338 billion yuan in 2027 [13][58] Financial Performance - In the first half of 2025, the company achieved an operating income of 146.20 billion yuan, a year-on-year increase of 9.07%, and a net profit attributable to shareholders of 7.27 billion yuan, a year-on-year decrease of 9.72% [5][30] - The gross profit margin for Q2 2025 was 19.87%, showing a year-on-year decrease of 0.61 percentage points, while the net profit margin was 6.14%, down 0.40 percentage points year-on-year [4][5] - The company’s cash flow from operating activities was 1.23 billion yuan, a significant decrease of 72.33% year-on-year, primarily due to increased employee wages and taxes [5] Product Performance - The mining segment generated revenue of 15.50 billion yuan in the first half of 2025, up 19.64% year-on-year, with a gross margin of 78.27% [5] - Special chemicals revenue was 26.15 billion yuan, a slight increase of 0.28% year-on-year, while fertilizers and pesticides generated revenues of 19.24 billion yuan and 25.68 billion yuan, respectively [5] - The average price of phosphate rock remained high at 1,020 yuan/ton in Q2 2025, with a year-on-year increase of 1% [10][11] Market Outlook - The company is expected to benefit from its strong phosphate resource advantages and new material projects, which are anticipated to provide new profit growth points [13][58] - The projected PE ratios for the company are 15, 12, and 10 for the years 2025, 2026, and 2027, respectively, indicating a favorable valuation outlook [13][58]