Asia-Potash(000893) 浙商证券·2025-04-24 08:15Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company has shown stable growth in production and sales, with performance exceeding expectations. In 2024, the total revenue was 3.548 billion yuan, a year-on-year decrease of 8.97%, while the net profit attributable to the parent company was 0.892 billion yuan, down 30.00% year-on-year. However, Q4 2024 saw a revenue increase of 5.86% year-on-year and a net profit increase of 40.44% year-on-year. In Q1 2025, revenue surged by 91.47% year-on-year, and net profit increased by 376.02% year-on-year [1][2][8]. Summary by Sections Production and Sales Growth - The company has maintained growth in production and sales, with 2024 production reaching 1.8154 million tons, up 10.24% year-on-year, and sales of 1.7414 million tons, up 8.42% year-on-year. In Q1 2025, production was 0.5062 million tons, a 17.72% increase year-on-year, and sales were 0.5283 million tons, a 76.98% increase year-on-year [2][3]. Market Conditions - The potassium fertilizer market is experiencing a slight recovery, with the average price of potassium chloride in Q1 2025 increasing by 16.07% year-on-year. As of April 23, 2025, the domestic average price of potassium chloride rose by 17.49% from its low point earlier in the year, indicating a potential recovery in industry conditions [2][3]. Resource and Cost Management - The company possesses abundant potassium mineral resources, with a total mineral rights area of 263.3 square kilometers and a potassium ore reserve exceeding 6 billion tons. The tax rate for the company's subsidiary in Laos will be reduced from 35% to 20% from 2024 to 2028, which is expected to lower overall costs [3]. Capacity Expansion and Non-Potassium Business - The company is actively expanding its potassium chloride production capacity, aiming for an annual increase of 1 million tons. The first 1 million tons/year project has already reached production, and additional projects are in progress. The company is also developing non-potassium resources, including a bromine production project that is expected to support its growth in the chemical industry [3][8].