CHINA XLX FERTILISER(01866.HK):A LEADING COMPOUND FERTILISER PRODUCER IN CHINA INITIATE WITH "BUY"
CHINA XLX FERTILISER(01866.HK):A LEADING COMPOUND FERTILISER PRODUCER IN CHINA INITIATE WITH "BUY"
Rating and TP: We initiate with a rating of "Buy" and a target price of HK$5.70, representing 2024/ 2025/ 2026 PER of 5.2x/ 4.9x/ 4.3x.
評級和目標價：我們開始評級爲“買入”，目標價爲HK$5.70，代表2024/2025/2026年的PER分別爲5.2x/ 4.9x/ 4.3x。
Our Views: 1) Competition in high-end compound fertiliser market is less intense than anticipated. 2) Growth potential of overseas markets has been underestimated.
我們的觀點：1）高端複合肥料市場的競爭不如預期激烈。2）海外市場的增長潛力被低估了。
Investment Theme: China's fertiliser market is shifting towards high-quality compound fertilisers due to environmental regulations and rising production costs in coal-based industries. The use of compound fertilisers increased by 8.9% in 2022, despite reduced overall fertiliser usage. China XLX Fertiliser (CXLX) is uniquely positioned to capture the shift with its technological and cost advantages, which will enable it to expand market share amid industry consolidation, achieving a higher revenue and net profit growth compared with its peers.
投資主題：由於環境規定和煤炭行業生產成本的上升，中國的肥料市場正在向高質量的複合肥料轉移。儘管肥料的整體使用量有所降低，但複合肥料的使用量在2022年增長了8.9％。中國鑫龍寶肥業（CXLX）憑藉其技術和成本優勢處於獨特的市場地位，將能夠在行業整合中擴大市場份額，實現更高的營業收入和淨利潤增長，
Catalyst(s): 1) Expansion plans for 2024-2026 to fuel growth.
催化劑：1）2024-2026年的擴張計劃將推動增長。
Risk Factor(s): 1) Price volatility of raw materials may hurt gross margin, 2) Competition is likely to remain intense within the fertiliser industry.
風險因素：1）原材料價格的波動可能會損害毛利率。2）肥料行業的競爭可能仍然激烈。
譯文內容由第三人軟體翻譯。