Xingfa Chem(SH:600141) Huachuang Securities·2025-10-28 08:56Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 33.15 CNY [1]. Core Insights - The company achieved a revenue of 23.781 billion CNY in the first three quarters of 2025, representing a year-on-year increase of 7.85%. The net profit attributable to shareholders was 1.318 billion CNY, up 0.31% year-on-year. In Q3 alone, revenue reached 9.161 billion CNY, with year-on-year and quarter-on-quarter growth of 5.96% and 23.94%, respectively. The net profit for Q3 was 0.592 billion CNY, reflecting a year-on-year increase of 16.17% and a quarter-on-quarter increase of 42.15% [1]. Financial Performance Summary - For 2024A, total revenue is projected at 28.396 billion CNY, with a growth rate of 1.0%. The net profit attributable to shareholders is expected to be 1.602 billion CNY, with a growth rate of 16.1%. The earnings per share (EPS) is forecasted to be 1.45 CNY, with a price-to-earnings (P/E) ratio of 18 [4]. - For 2025E, total revenue is estimated at 30.826 billion CNY, with a growth rate of 8.6%. The net profit is projected at 1.867 billion CNY, with a growth rate of 16.6%. The EPS is expected to rise to 1.69 CNY, with a P/E ratio of 16 [4]. - For 2026E, total revenue is forecasted at 33.137 billion CNY, with a growth rate of 7.5%. The net profit is expected to reach 2.433 billion CNY, with a growth rate of 30.3%. The EPS is projected at 2.21 CNY, with a P/E ratio of 12 [4]. Business Segment Performance - The company's main segments, including pesticides, fertilizers, specialty chemicals, and organic silicon products, reported revenues of 3.964 billion CNY, 3.244 billion CNY, 3.942 billion CNY, and 2.075 billion CNY, respectively, in the first three quarters of 2025. The year-on-year changes in revenue were -1.0%, +8.2%, -0.7%, and +11.7% [9]. - The sales volume for these segments showed an upward trend, indicating a gradual recovery in downstream demand [9]. Strategic Developments - The company announced plans to acquire Qiaogou Mining, which will increase its phosphate resource reserves from 395 million tons to 580 million tons. This acquisition is expected to enhance the company's resource advantages in the phosphate industry [9]. - The company is also advancing several key projects in fine chemicals, which are anticipated to become new profit growth points. These include various production upgrades and expansions in organic silicon and phosphorus-related products [9].