Yuanxing Energy(000683) 长江证券·2025-04-27 08:17Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 13.26 billion yuan for 2024, representing a year-on-year increase of 10.1%. The net profit attributable to shareholders was 1.81 billion yuan, up 28.5% year-on-year, while the net profit excluding non-recurring items was 2.07 billion yuan, down 14.2% year-on-year [2][4]. - In Q1 2025, the company achieved a revenue of 2.87 billion yuan, a decrease of 7.3% year-on-year and 0.8% quarter-on-quarter. The net profit attributable to shareholders was 340 million yuan, down 40.4% year-on-year but up 5027.5% quarter-on-quarter [2][4]. - The company plans to distribute a cash dividend of 3.0 yuan per 10 shares (tax included), totaling 1.12 billion yuan, resulting in a dividend yield of approximately 5.9% based on the closing price on April 24 [2][4]. Summary by Sections Financial Performance - For 2024, the company achieved total revenue of 13.26 billion yuan, with a gross profit of 5.43 billion yuan, representing a gross margin of 41% [15]. - The company’s operating profit for 2024 was 3.60 billion yuan, accounting for 27% of total revenue [15]. - The projected net profits for 2025, 2026, and 2027 are 1.49 billion yuan, 1.91 billion yuan, and 2.33 billion yuan, respectively [10]. Market Conditions - The prices of major products are expected to continue declining in 2024, with domestic prices for key products such as heavy soda and light soda decreasing by 28.2% and 27.2% year-on-year, respectively [10]. - Despite the price decline, the company’s sales volume for soda ash and baking soda increased significantly, with year-on-year growth of 123.9% and 22.2%, respectively [10]. Future Outlook - The second phase of the Alashan natural soda project is expected to be completed by December 2025, which will add an annual production capacity of 2.8 million tons of soda ash and 400,000 tons of baking soda, contributing to incremental profits [10]. - The company maintains a strong profit margin due to its low-cost natural soda production process, which is expected to sustain profitability even in a challenging pricing environment [10].