Chanhen(SZ:002895) Huaxin Securities·2025-09-09 15:37Investment Rating - The report maintains a "Buy" investment rating for Chuanheng Co., Ltd. (002895.SZ) [1][9] Core Views - The company's revenue growth in the first half of 2025 is driven by product price increases and capacity expansion, with total revenue reaching 3.36 billion yuan, a year-on-year increase of 35.28% [1][2] - The core products, calcium dihydrogen phosphate and monoammonium phosphate, saw average prices increase by 22.16% and 5.13% respectively, contributing to the overall revenue growth [2] - The company benefits from owning upstream phosphate resources, enhancing its integrated supply chain advantages [2][8] Summary by Sections Revenue and Profitability - In Q2 2025, the company achieved a revenue of 1.867 billion yuan, a year-on-year increase of 29.63% and a quarter-on-quarter increase of 25.06% [1] - The net profit attributable to shareholders for the first half of 2025 was 536 million yuan, up 51.54% year-on-year [1] Cost Control and Cash Flow - The company managed to slightly reduce its sales, management, and financial expense ratios, while R&D expenses increased due to more projects [3] - The net cash flow from operating activities was -147 million yuan, a significant decline of 199.53% year-on-year, primarily due to increased cash payments for raw materials [3] Resource and Capacity Expansion - The company owns several phosphate mines with a total production capacity expected to reach 5.5 million tons by the second half of 2027, enhancing self-sufficiency and reducing procurement costs [8] - The integrated layout of the phosphate industry chain is being advanced through subsidiaries, which will further expand into new energy materials [8] Profit Forecast - The forecasted net profits for 2025, 2026, and 2027 are 1.217 billion yuan, 1.407 billion yuan, and 1.688 billion yuan respectively, with corresponding PE ratios of 13.8, 11.9, and 9.9 times [9][11]