Chanhen(SZ:002895) Capital Securities·2024-05-15 10:30Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown continuous improvement in phosphate ore production, with a net profit attributable to shareholders expected to maintain growth in 2023 [1] - The average price of phosphate rock in 2023 was 990 RMB/ton, a year-on-year increase of 10.2%, contributing to the company's profitability [4] - The company has completed several projects in its Guangxi base, which are expected to enhance production capacity and profitability in the future [5] - The company plans to distribute a cash dividend of 10.00 RMB per 10 shares, reflecting a significant increase in the dividend payout ratio to 77.7% [5] Summary of Financial Performance - In 2023, the company achieved operating revenue of 4.32 billion RMB, a year-on-year increase of 25.3%, and a net profit of 766 million RMB, an increase of 1.1% [3][6] - The company’s revenue for Q4 2023 was 1.25 billion RMB, up 25.81% year-on-year, with a net profit of 275 million RMB, reflecting a 62.76% increase year-on-year [3] - The company’s phosphate ore production reached 2.992 million tons in 2023, an increase of 480,000 tons from 2022 [4] Future Projections - The company is projected to achieve net profits of 936 million RMB, 1.206 billion RMB, and 1.485 billion RMB for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.73, 2.22, and 2.74 RMB [5][6] - Revenue growth rates are expected to be 20.3% in 2024, 21.8% in 2025, and 17.6% in 2026 [6]