KMCJNC(SZ:300505) GUOTAI HAITONG SECURITIES·2026-01-18 05:23Investment Rating - The report assigns a rating of "Buy" for the company, with a target price of 32.94 CNY [5][18]. Core Insights - The company is positioned as a high-quality player in the wet-process phosphoric acid sector, being the only domestic enterprise capable of producing food-grade purified phosphoric acid using self-developed technology. The company has achieved a technical level comparable to industry leaders [12][20]. - The Guangxi base offers significant advantages in phosphate ore procurement and logistics, enhancing the company's operational efficiency [12][20]. - The Egypt project is progressing steadily according to plan, with strategic importance in establishing an overseas processing center to optimize cost structure and enhance market competitiveness [12][20]. Financial Summary - Total revenue is projected to grow from 2,711 million CNY in 2023 to 4,659 million CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 18.3% [4]. - Net profit attributable to the parent company is expected to turn from a loss of 91 million CNY in 2023 to a profit of 570 million CNY by 2027, indicating a significant recovery and growth trajectory [4]. - Earnings per share (EPS) are forecasted to increase from -0.33 CNY in 2023 to 2.08 CNY in 2027 [4][18]. Business Overview - The company's operations focus on the wet-process phosphoric acid technology, producing various products including feed additives, fertilizers, and purified phosphoric acid, which are essential in agriculture, industry, and food sectors [20][21]. - The company has developed advanced techniques for utilizing low-grade phosphate ore and has established a comprehensive capability in production technology, cost control, and international channels [20]. Market Position - The company benefits from a strategic location in Guangxi, approximately 20 kilometers from the port, facilitating efficient logistics for raw material procurement and product transportation [12][20]. - The report highlights the company's competitive edge in the phosphoric acid market, driven by its innovative production methods and strong market demand for its products [20][24].