ETS(SZ:002545) Western Securities·2025-11-04 07:07Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company reported a significant increase in net profit for the first three quarters of 2025, achieving a net profit of 828 million yuan, which represents a year-on-year growth of 77.57% [1] - The company's gross margin and net margin improved substantially, with Q1-Q3 2025 gross margin at 40.53% and net margin at 24.40%, reflecting increases of 10.23 percentage points and 9.40 percentage points year-on-year, respectively [2] - The company is expected to benefit from rising potassium fertilizer prices in the short term and new production capacity in the medium to long term, with projected net profits of 1.268 billion, 1.446 billion, and 1.719 billion yuan for 2025, 2026, and 2027, respectively [4] Summary by Sections Financial Performance - For Q1-Q3 2025, the company achieved revenue of 3.392 billion yuan, a year-on-year increase of 9.05%, and Q3 revenue of 1.244 billion yuan, with a quarter-on-quarter increase of 4.27% [1] - The company’s Q3 net profit reached 335 million yuan, with a year-on-year increase of 75.26% and a quarter-on-quarter increase of 16.43% [1] Profitability - The overall gross margin for Q1-Q3 2025 was 40.53%, with Q3 gross margin at 43.55%, indicating a significant improvement [2] - The company’s selling expense ratio was 1.22%, management expense ratio was 3.10%, and financial expense ratio was 0.60%, totaling a decrease of 0.19 percentage points to 4.92% [2] Future Prospects - The company is expected to obtain mining rights for phosphate rock in 2026 and double its potassium fertilizer production capacity by 2027 [3] - The company currently has a potassium chloride production capacity of 1 million tons per year and is advancing a second project in Laos, which is expected to benefit from rising potassium fertilizer prices [3]