CHINA XLX FERTILIZER (01866) rose more than 7%, reaching a high of HK$10.97 to set another record high. At the time of writing, the stock was up 6.07% at HK$10.84, with a turnover of HK$26.10 million.
The move comes amid reports that Iranian officials stated the country's armed forces have entered a state of full alert.
Huatai Securities previously noted that Iran is a significant global supplier of urea and methanol; should the current conflict persist, it could disrupt the nation's natural gas supply. A reduction in gas-based chemical feedstocks might lead to localized shortages of urea and methanol worldwide.
Energy giants with cost-reduction and production-capacity advantages, along with natural gas business growth that enables high dividends, as well as domestic producers with substantial urea capacity and significant methanol sales volumes, are likely to benefit.
It is noteworthy that CHINA XLX FERT has recently opted for intensive share repurchases. On January 23, the company spent approximately HK$8.84 million to buy back 874,000 shares.
Furthermore, on the evening of January 12, CHINA XLX FERT announced a definitive share buyback plan, stating that from January 13, it would repurchase up to 10% of its issued shares within the year at a cost not exceeding HK$200 million.
The Board believes this share repurchase plan demonstrates the company's recognition of its own intrinsic value and its confidence in the long-term development of its business.
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