Investment Rating - The report gives a "Buy" rating for the company for the first time [1]. Core Views - The company is transitioning from a traditional steel structure manufacturer to a resource-oriented enterprise, driven by its dual focus on steel structures and potash fertilizer production [4][10]. - The potash fertilizer market is expected to experience price increases due to ongoing supply disruptions and a long-term supply-demand imbalance [4][29]. - The company has significant growth potential in the potash sector, with plans to expand production capacity and explore additional resource opportunities [4][6]. Summary by Sections 1. Steel Structure and Potash Fertilizer Dual Drive - The company has evolved from a single steel structure focus to a dual business model that includes potash fertilizer, following strategic acquisitions and expansions [4][10]. 2. Potash Fertilizer Supply Disruptions and Price Trends - Global potash supply is constrained, with major producers announcing production cuts, which is likely to sustain upward price pressure [4][44]. - The global potash market is characterized by a significant supply-demand mismatch, with major production concentrated in a few countries [39][40]. 3. Successful Overseas Expansion and Product Diversification - The company has successfully established a presence in the potash market, with production capacity reaching 1 million tons per year and plans for further expansion [12][18]. - The company is also diversifying its product offerings through investments in other mineral resources, such as phosphates [6][12]. 4. Mining Sector Layout and Transition to Resource-Oriented Enterprise - The company has made strategic investments in mining, including acquiring stakes in phosphate projects, to enhance its resource base [6][10]. - The company is actively developing potash resources in Laos, which is expected to contribute significantly to its growth [4][6]. 5. Earnings Forecast and Valuation - The company is projected to achieve substantial growth in net profit, with estimates of 1.1 billion, 1.25 billion, and 1.5 billion yuan for 2025, 2026, and 2027 respectively, reflecting a compound annual growth rate of 95.5% [5][6].

Core Viewpoint - China Pingmei Shenma Group is transforming from a coal-centric enterprise to a diversified materials company, focusing on high-end nylon, semiconductor materials, and new energy materials, aiming to become a global leader in functional materials [10][15][24]. Group 1: Industry Transformation - The company has established a complete coal-based nylon chemical industry chain, producing high-performance nylon fibers and engineering plastics [10]. - Pingmei Shenma has shifted from being a coal seller to a materials producer, with non-coal revenue now accounting for over 80% of its income [16]. - The company aims to achieve over 100 billion yuan in revenue from its new energy and materials sector by 2030 [24]. Group 2: Technological Advancements - The company has achieved a semiconductor-grade silane gas purity of 99.99999%, marking a significant milestone in domestic production [22]. - The carbon silicon semiconductor powder purity has reached 8N (99.9999998%), positioning the company at the forefront of the global market [23]. - The company has developed a fully autonomous production line for key nylon-66 raw materials, reducing costs by 30% compared to imports [17]. Group 3: Smart Mining and Resource Management - The company has implemented smart mining technologies, increasing production efficiency by over 15% and reducing coal production costs from 112 yuan to below 90 yuan per ton [12][13]. - Pingmei Shenma has acquired exploration rights for 1.688 billion tons of coal in Xinjiang, expanding its resource base [13]. - The company has established strategic partnerships with major steel producers to ensure stable supply chains [12]. Group 4: New Energy and Materials Development - The new energy and materials segment achieved a revenue of 12.6 billion yuan in 2024, reflecting a 35% year-on-year growth [19]. - The company is focusing on high-end carbon materials and new energy storage solutions, with plans to invest 5 billion yuan in the next three years [20]. - The integration of various production processes has led to significant cost savings and efficiency improvements across the supply chain [20]. Group 5: Future Outlook - The company is optimistic about the long-term prospects of the coal industry, despite current price pressures, due to tightening supply and increasing demand for high-quality coking coal [13]. - Pingmei Shenma is committed to enhancing its competitive edge through cost control and innovation in production processes [14]. - The company aims to leverage its integrated supply chain to become a leader in the new energy materials market [24].