Hua'an Securities: High prosperity of phosphorus resources continues; yellow phosphorus is expected to see value re-rating.

Huaan Securities released a research report stating that the global supply and demand of phosphate resources remain persistently tight, with high industry policy barriers and limited new supply, coupled with the continuous release of incremental demand from new energy and energy storage, the sector's high prosperity is expected to continue. It is recommended to position around three main lines: first, leading integrated phosphate chemical enterprises, which rely on complete industrial chain supporting facilities to hedge against raw material price fluctuations, possess comprehensive cost advantages, and have strong profit stability; second, value revaluation of yellow phosphorus enterprises, as the industry supply landscape is highly concentrated, demand substitution for thermal-process phosphoric acid continues to be released, and enterprises with supporting phosphate rock and power facilities fully enjoy price elasticity; third, leading enterprises in phosphogypsum-to-acid technology, where solid waste resource utilization effectively hedges against sulfur price increases and opens up capacity and profit space, with prominent barrier advantages. The bank is optimistic about phosphate chemical enterprises that prioritize solid waste-to-acid.