CICC initiates coverage on China Xinjiang Heartland Chemical Co. Ltd (01866.HK) for the first time: assigned an "outperform" rating with a target price of HK$10.57.

According to the Wisdom Financial APP, recently, China International Capital Corporation (CICC) released a research report, covering China Xinxin Heart-to-Heart Fertilizer (01866.HK) for the first time, giving it an "outperform industry" rating with a target price of 10.57 Hong Kong dollars, corresponding to a 2026 price-earnings ratio of 7.3 times. CICC pointed out that the company is a leading domestic coal chemical enterprise, using industry-leading coal-water slurry technology, with a cost advantage of about 10% lower than the industry average, building a moat; with the completion of production expansion in Henan, Xinjiang Zhundong, and Jiangxi bases, urea production capacity is expected to increase by 59% to 8.05 million tons in 2027. At present, urea profitability is at a cyclical low, with limited downward price pressure, and capacity expansion is expected to drive the company's performance growth.