YYTH(SH:600096) Great Wall Securities·2025-09-09 11:01Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [5][21]. Core Views - The company's phosphochemical sector is showing steady improvement, with continuous release of phosphate rock production capacity [1][9]. - The overall sales gross margin for the first half of 2025 increased by 2.55 percentage points year-on-year, despite a decline in revenue and net profit due to lower prices of key products and rising sulfur prices [2][4]. - The company is optimizing its dividend mechanism, planning to distribute at least 45% of the cumulative distributable profits over the next three years, which is expected to enhance investor confidence and long-term investment value [11][12]. Financial Performance Summary - For the first half of 2025, the company reported a revenue of 24.992 billion, a year-on-year decrease of 21.88%, and a net profit of 2.761 billion, down 2.81% year-on-year [1][2]. - The company's operating cash flow decreased by 9.02% year-on-year, while the cash and cash equivalents balance increased by 18.36% year-on-year to 6.742 billion [3][4]. - The company’s revenue for 2025 is projected to be 61.990 billion, with a net profit of 5.656 billion, corresponding to an EPS of 3.10 [12][13]. Industry Overview - The domestic phosphate rock supply and demand remain tight, with prices expected to stabilize due to long construction cycles for new phosphate rock production capacity and regulatory policies [9][10]. - The phosphate fertilizer segment generated 6.995 billion in revenue in the first half of 2025, accounting for 27.99% of total revenue, with stable market conditions for domestic phosphate fertilizer prices [9][10].