CHINA XLX FERT (01866) surged more than 4%, approaching its historical high of HK$9.5. As of the time of writing, the stock was up 3.96% to HK$9.45, with a turnover of HK$22.0342 million.

The escalation of the situation in Iran is a key factor. Guolian Futures noted in a research report that Iran accounts for 3.5% of global urea production capacity and about 5% of global urea trade volume; following the "three strikes" action, overseas urea prices have risen significantly.

Guoyuan Futures also stated that expectations for a tightening global urea supply are strengthening, driving an upward trend in international urea prices.

Guozheng International previously released a research report indicating that the second phase of the Jiujiang base is expected to commence operations smoothly in the third quarter of 2025. The project utilizes more efficient, environmentally friendly, and energy-saving process technology, which is projected to reduce comprehensive production costs by 10% under full urea production capacity.

By the end of 2025, following the completion of the Xinxiang base's chemical new materials project, urea production capacity will be further expanded, helping to effectively reduce urea production costs by approximately 12%.

The report suggests that with the gradual release of low-cost production capacity, CHINA XLX FERT's profitability is expected to improve significantly.