Investment Rating - The investment rating for the basic chemical industry is "Positive" (maintained) [1] Core Viewpoints - The report highlights that the price of phosphate rock remains stable at a high level, with supply tight for high-grade ores. The production of phosphate rock in China is expected to increase, with a year-on-year growth of 7.8% in 2024, reaching 113.53 million tons [4][10] - The report suggests that the profitability of integrated fertilizer companies is expected to improve due to the high price of phosphate fertilizers and the significant price difference between domestic and international markets [6] Summary by Sections Phosphate Rock Production and Pricing - In 2024, China's phosphate rock production is projected to be 113.53 million tons, an increase of 8.33 million tons year-on-year, with a growth rate of 7.8% [4][10] - The average price of domestic phosphate rock of various grades as of May 9 is 1020, 947, and 771 RMB/ton [5] Fertilizer Market Dynamics - The consumption share of phosphate fertilizers in 2024 is expected to be 60% for monoammonium phosphate, 12% for wet-process phosphoric acid, and 11% for phosphates [5] - The average market price for domestic monoammonium phosphate and diammonium phosphate is 3,140 and 3,715 RMB/ton, respectively, which is lower than the export prices [5] Profitability Outlook - The report anticipates that the profitability of integrated phosphate chemical leading companies will improve, with cash dividends expected to increase due to the high barriers to phosphate mining and stricter environmental regulations [6] - Recommended stocks include Xingfa Group, Yuntianhua, and Chuanheng Co., which have significant phosphate production capacities [6]