CHINA XLX FERT (01866) surged over 7%, extending its six-day rally to more than 25%. At press time, the stock was up 7.43% to HK$9.4, with a turnover of HK$108 million.
The domestic urea market has shown an upward trend recently, with small and medium-sized particle urea prices in mainstream regions rising to RMB 1,580–1,680 per ton. Analysts expect the urea market to remain weak in December, with limited downside due to cost and production cuts but insufficient upward momentum amid supply-demand imbalances.
Guozheng International noted that the Phase II project at the Jiujiang base, operational in Q3 2025, adopts more efficient, eco-friendly, and energy-saving technology, reducing comprehensive production costs by 10% at full urea capacity. By late 2025, the Xinxiang base’s chemical materials project will further expand urea capacity, cutting production costs by around 12%. The gradual release of low-cost capacity is expected to significantly boost CHINA XLX FERT's profitability.
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