YYTH(SH:600096) Guoxin Securities·2025-12-26 01:26Investment Rating - The investment rating for the company is "Outperform the Market" [2][29] Core Views - The company has secured mining rights for a significant phosphate resource, enhancing its competitive edge and cost structure [3][5] - The phosphate resource acquired is one of the few large, high-quality phosphate mines in China, with a resource volume of approximately 2.438 billion tons and an average grade of 22.54% [3][6] - The demand for phosphate rock is expected to rise due to its scarcity and the increasing need for energy storage and power batteries [8][9] Summary by Sections Company Overview - Yuntianhua's subsidiary, Yunnan Yuntianhua Phosphate New Materials Co., Ltd., obtained mining rights for the Zhenxiong phosphate mine, covering an area of 23.1564 square kilometers with a mining period until December 2040 [3][5] - The company currently holds a 35% stake in the subsidiary, with plans for control to be transferred to the listed company within three years [3][5] Financial Projections - The projected net profit for the company from 2025 to 2027 is estimated at 5.523 billion, 5.574 billion, and 5.709 billion yuan, respectively, with corresponding EPS of 3.01, 3.04, and 3.11 yuan [4][29] - The current price-to-earnings ratio (PE) is projected to be 10.5, 10.4, and 10.1 for the years 2025 to 2027 [4][29] Industry Insights - The phosphate rock supply in China is tightening due to environmental regulations and the depletion of high-grade resources, leading to a long-term high price expectation for phosphate rock [8][9][13] - The consumption structure of phosphate rock is evolving, with traditional agricultural demand decreasing while demand from new energy materials is rapidly increasing [11][23] - The company is well-positioned to benefit from the growing demand for high-grade phosphate rock in the energy storage and battery sectors, particularly for lithium iron phosphate batteries [25][28]