According to Zhitong Finance APP, SINOFERT (00297) saw a rise of over 4% towards the end of the trading session, with a current increase of 4.42%, priced at 1.18 HKD, and a trading volume of 26.0685 million HKD.

In terms of news, the national agricultural supplies assurance platform held a meeting on December 26 to discuss fertilizer supply and price stabilization, focusing on issues related to stabilizing urea market prices and balancing the price levels among different fertilizers (nitrogen, phosphorus, and potassium), calling for an increase in the storage plan. CITIC Futures pointed out that although it is unlikely that export restrictions will be lifted by the end of the year under the supply assurance policy, it is still necessary to pay attention to the risks of disturbances in export policy expectations, considering the futures market's reactions. Attention should continue on the price stabilization policies proposed at the fertilizer supply assurance meeting and their implementation to see if they can alleviate the short-term pressures of high inventory accumulation.

Guozheng International noted that SINOFERT is China's largest fertilizer importer, with over 30 years of experience in international fertilizer trade and international trade relations. It is also the largest fertilizer distributor in China, possessing a vast distribution service network. In 2023, SINOFERT launched its "Bio+" Global Strategy, which will gradually promote the development of biological agriculture around three aspects: nutrient efficiency, biological fertilizers, and soil health, aiming to transform into an innovative leader in biological fertilizers and soil health. This business sector is a growth area for SINOFERT, accounting for 36% of revenue, and is a focus for future development, driving performance growth. Currently, the valuation corresponds to a projected PE of 7.5 times for 2025, with a dividend yield of approximately 5%.