HUALU-HENGSHENG(600426) 新浪财经·2025-04-26 06:31Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, primarily due to falling product prices, but the results were in line with expectations [1] Financial Performance - Q1 2025 revenue was 7.772 billion yuan, down 2.6% year-on-year and 14.1% quarter-on-quarter [1] - Net profit attributable to shareholders was 707 million yuan, corresponding to earnings per share of 0.33 yuan, down 33.7% year-on-year and 17.2% quarter-on-quarter [1] - The decline in revenue was mainly attributed to a drop in average selling prices across key product categories, with significant decreases in prices for chemical fertilizers and organic amines [1] Market Trends - Most product price spreads are at historical low levels, with expectations for improved export demand for urea and oxalic acid [2] - Urea prices in Q1 2025 showed a year-on-year decline of 22%, while coal prices also decreased, impacting the price spread [2] - Urea exports from China fell significantly in 2024, but there is potential for recovery in 2025 as domestic supply remains ample [2] Operational Developments - The company is expanding its capacity and product categories while focusing on cost reduction and efficiency improvements [3] - As of Q1 2025, the company had ongoing construction projects valued at 4.883 billion yuan, indicating a slight increase from the end of 2024 [3] - New projects include the production of amide raw materials and integrated projects for BDO and NMP, aimed at enhancing future growth [3] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 remain unchanged at 3.660 billion yuan and 4.196 billion yuan, respectively [4] - The current stock price corresponds to a price-to-earnings ratio of 12.2 times for 2025 and 10.6 times for 2026, with a target price of 29.5 yuan indicating a potential upside of 40.7% [4]