The Zhitong Finance App learned that Haitong International released a research report stating that maintaining the “superior to the market” rating of China Heart to Heart Fertilizer (01866) is expected to be 15.07/17.5/20.19 yuan in 2022-24, the corresponding EPS is 1.23/1.42/1.64 yuan, and the target price is HK$8.5. The company achieved revenue of 17.516 billion yuan (+49% YoY) and consolidated net profit of 1,584 billion yuan (+14% YoY) in 2022/Q3. The main reasons for the increase in performance were: 1) The second and second plant renovation and upgrading projects at the Xinxiang base and the renovation and expansion project of the Tianxin coal mine in Xinjiang were put into operation one after another. 2) The rise in global food prices has led to a rise in the prices of chemical fertilizers and coal-chemical-related products.

According to the report, in terms of project construction, the company announced on November 18 that its subsidiary, Liaoning Heart to Heart, plans to build a million-ton ecological fertilizer project in Dayushan Economic Development Zone in Huludao, Liaoning. The project is mainly divided into three phases, with an investment of about 300 million yuan in the first phase. The proposed construction includes a compound fertilizer production line, steam boilers, safety facilities, living ancillary facilities, etc. The construction is expected to be carried out in stages and batches in the later stages according to the approval situation.