Core Viewpoint - China Heart and Heart Fertilizer (01866.HK) reported a slight revenue decline of approximately 1% for the fiscal year 2024, but achieved a significant net profit growth of 23%, indicating resilience in its business model despite market challenges [1][3]. Financial Performance - The company recorded total revenue of 23.128 billion yuan for 2024, a year-on-year decrease of about 1% [1]. - The net profit attributable to shareholders was 1.459 billion yuan, reflecting a 23% increase compared to the previous year [1]. - The proposed final dividend is 0.26 yuan per share [1]. Sales and Product Performance - Urea sales revenue reached 7.306 billion yuan, up 6.3%, driven by a 29% increase in urea sales volume, although prices fell by 17% due to market supply-demand imbalances [3]. - Compound fertilizer sales revenue was 5.994 billion yuan, down 2%, with a slight volume decrease of 0.3% attributed to increased market supply [3]. - Methanol sales revenue increased by 14.5% to 2.678 billion yuan, supported by a 16% rise in sales volume and a 10.6% reduction in production costs [3]. - DMF sales volume surged by 36%, marking it as the fastest-growing product category for the company [3]. Strategic Focus and Cost Management - The company is focusing on high-value chemical products, evidenced by the disposal of its coal mine subsidiary and investments in new projects [4]. - The average production cost of methanol decreased by 10.6%, while compound fertilizer production costs fell by 4%, showcasing the company's cost management capabilities [4]. - The proportion of high-efficiency fertilizers, such as liquid and water-soluble fertilizers, increased to 35% [4]. Future Outlook - For 2025, the company anticipates a stable nitrogen fertilizer supply-demand balance, with potential price stabilization for urea due to seasonal agricultural demand [5]. - The company plans to continue expanding high-quality production capacity and aims to exceed a total output of 10 million tons [5]. - Analysts believe that the company's integrated supply chain advantages and differentiated capabilities position it well for a potential recovery in the industry [5].
中国心连心化肥：业绩承压、利润逆增 主营产品销量稳步增长