HBYH(000422) 华创证券·2024-10-29 16:36Investment Rating - The report maintains a "Strong Buy" rating for Hubei Yihua (000422) with a target price of 16.95 CNY [1]. Core Views - The company reported a revenue of 13.52 billion CNY for the first three quarters of 2024, a year-on-year increase of 1.34%. The net profit attributable to shareholders reached 758 million CNY, up 94.92% year-on-year, while the net profit excluding non-recurring items was 558 million CNY, an increase of 70.40% year-on-year [1]. - The report highlights a mixed performance in the company's main products, with phosphoric acid diammonium exports thriving and domestic demand remaining stable, while urea faced supply pressure due to new production capacity and falling prices [1]. - The company is actively pursuing industrial transformation and upgrades, with significant capital expenditures and ongoing construction projects aimed at enhancing competitiveness and extending the industrial chain [1]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 4.46 billion CNY, a decrease of 3.23% year-on-year and 8.31% quarter-on-quarter. The net profit attributable to shareholders was 219 million CNY, an increase of 59.46% year-on-year but a decrease of 45.76% quarter-on-quarter [1]. - The gross profit margin for Q3 2024 was recorded at 14.67%, reflecting a decrease of 2.27 percentage points quarter-on-quarter but an increase of 2.03 percentage points year-on-year [1]. - The report projects adjusted net profit forecasts for 2024-2026, estimating 1.00 billion CNY, 1.22 billion CNY, and 1.42 billion CNY respectively, with corresponding PE ratios of 15x, 12x, and 10x [2].