Xingfa Chem(600141) 华创证券·2024-08-22 15:08Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 25.50 CNY [1][5]. Core Insights - The company has shown signs of demand recovery and profit improvement, with ongoing projects in both upstream and downstream sectors [1]. - In the first half of 2024, the company achieved a revenue of 13.404 billion CNY, a year-on-year decrease of 2.1%, while the net profit attributable to shareholders increased by 29.9% to 0.805 billion CNY [1][2]. - The report highlights the company's strategic focus on enhancing its cost advantages and strengthening its research and development capabilities [3]. Summary by Sections Financial Performance - In H1 2024, the company reported revenues of 26.70 billion CNY from pesticides, 20.03 billion CNY from fertilizers, 26.07 billion CNY from specialty chemicals, and 11.74 billion CNY from organic silicon, with respective year-on-year growth rates of 22.5%, 23.8%, 98.5%, and a slight decline of 1.5% [2]. - The gross profit margin for the first half of 2024 was 17.38%, with a net profit margin of 6.03% [3]. Product Segments - The report indicates that while product prices remain under pressure, the demand side is showing signs of recovery, particularly in the pesticide and fertilizer segments [2]. - The company has successfully launched new mining projects that enhance the overall efficiency of its phosphate resources [3]. Future Outlook - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 1.876 billion CNY, 2.364 billion CNY, and 2.624 billion CNY, respectively [5]. - The report anticipates a gradual recovery in performance, supported by the company's integrated supply chain advantages and ongoing R&D efforts [3].