STANLEY(002588) 国海证券·2024-08-20 13:41Investment Rating - The report maintains a "Buy" rating for the company [2][42]. Core Views - The company has shown significant growth in its composite fertilizer business, with a notable increase in both volume and profit in the first half of 2024. The revenue reached 5.672 billion yuan, a year-on-year increase of 9.04%, while the net profit attributable to shareholders was 510 million yuan, up 27.98% year-on-year [2][7]. - The company is expected to continue its growth trajectory, with projected revenues of 10.7 billion yuan, 12.3 billion yuan, and 13.4 billion yuan for 2024, 2025, and 2026 respectively, alongside net profits of 895 million yuan, 1.078 billion yuan, and 1.285 billion yuan for the same years [7][42]. Summary by Sections Market Performance - The company's stock price has fluctuated between 4.72 and 7.70 yuan over the past 52 weeks [1]. Financial Performance - In Q2 2024, the company achieved a revenue of 3.044 billion yuan, representing a year-on-year increase of 41.51% and a quarter-on-quarter increase of 15.80%. The net profit for the same period was 272 million yuan, up 47.40% year-on-year and 13.99% quarter-on-quarter [2][3][36]. - The gross profit margin for Q2 2024 was 19.61%, an increase of 0.28 percentage points year-on-year [3][4]. Product Segmentation - The revenue from sulfur-based composite fertilizers was 1.161 billion yuan, with a gross margin of 17.66%. Chlorine-based composite fertilizers generated 3.247 billion yuan in revenue, with a gross margin of 18.75%, while new fertilizers and phosphate fertilizers contributed 1.213 billion yuan, with a gross margin of 19.52% [2][4][10]. Operational Efficiency - The company has improved its operational efficiency through effective management of raw material prices, production planning, and inventory adjustments. This has led to a significant increase in gross profit for Q2 2024 [3][4]. Future Outlook - The company is advancing its phosphate chemical projects, which are expected to enhance its phosphate fertilizer raw material supply capacity. The completion of these projects will likely reduce production costs and increase product sales [5][42].