BATIAN(SZ:002170)2024-05-30 01:00Investment Rating - The report initiates coverage with an "OUTPERFORM" rating for the company [15][43]. Core Insights - The company's net profit for 2023 saw a significant increase of 186.14% year-on-year, driven by substantial growth in phosphate rock production and revenue [11][20][42]. - The design capacity of the Xiaogaozhai phosphate mine has been raised to 2 million tonnes, which is expected to enhance future performance [16][28]. - The target price is set at RMB 7.65, based on a 15X PE valuation for 2024, reflecting a premium due to the expansion of phosphate rock production capacity [29][43]. Financial Performance Summary - In 2023, the company achieved operating revenue of RMB 3.244 billion, a year-on-year increase of 13.60% [42]. - The net profit attributable to the parent company was RMB 259 million, representing a year-on-year growth of 114.08% [42]. - The company plans to distribute a cash dividend of RMB 1.50 per 10 shares, with a payout ratio of 51.44% [42]. Profit Forecast - The forecasted net profits for 2024, 2025, and 2026 are RMB 450 million, RMB 603 million, and RMB 712 million, respectively, with corresponding EPS of RMB 0.51, RMB 0.68, and RMB 0.80 [29][43]. - The gross profit margin is expected to improve from 22.97% in 2023 to 30.57% by 2025 [24][26]. Shareholder Structure - The top ten shareholders hold a combined 40.03% of the company's shares, with the actual controller Huang Peizhao holding 26.75% [10][45].