Chanhen(002895) 长江证券·2025-04-20 05:17Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a strong performance in Q1 2025, achieving revenue of 1.49 billion yuan, a year-on-year increase of 43.1%, and a net profit attributable to shareholders of 200 million yuan, up 50.0% year-on-year [6][12]. - The company is a leading player in the domestic phosphate chemical industry, with significant increases in phosphate rock production capacity [12]. - The company has implemented a "mining integration" industrial model to enhance the utilization of low-grade phosphate rock and ensure stable supply of raw materials [12]. - The company plans to continue expanding its phosphate production capacity, with projected net profits of 1.33 billion yuan, 1.54 billion yuan, and 1.70 billion yuan for 2025, 2026, and 2027 respectively [12]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin of 28.8% and a net margin of 14.1%, with a year-on-year change of -5.1 percentage points and +2.2 percentage points respectively [12]. - The company’s revenue and profit growth were driven by increased sales volumes and higher prices of key products, including dihydrogen phosphate and ammonium phosphate [12]. Production Capacity - The company currently has a phosphate rock production capacity of 3 million tons per year and is constructing additional capacity of 9.3 million tons per year [12]. - New projects, such as the 200,000 tons/year semi-hydrated and dihydrated wet-process phosphoric acid project, have started production, contributing to sales growth [12]. Market Outlook - The company expects continued strong demand for its core products in Q2 2025, driven by domestic spring farming needs and stable demand for iron phosphate [12]. - The company’s pricing for key products is projected to increase in Q2 2025, further enhancing profitability [12].