CHINA XLX FERT (01866) rose more than 4% in afternoon trading. At the time of writing, the stock was up 3.99%, reaching HK$11.21, with a turnover of HK$40.6885 million. The company's first-quarter performance forecast indicates that its main business revenue for the period is expected to be between RMB 6.7 billion and RMB 7 billion, representing a year-on-year increase of 15% to 20%. Net profit attributable to shareholders is projected to be in the range of RMB 280 million to RMB 300 million, showing a substantial year-on-year growth of 41% to 52%. Analysts expressed optimism that the commissioning of new production capacity will lead to explosive earnings growth in 2026 and 2027. The first-quarter results exceeded expectations, prompting an upward revision of the 2026 net profit forecast to RMB 1.5 billion, with a "Buy" rating maintained. It was noted that the spring fertilizer application season in major domestic agricultural regions concluded in May, and the market has now entered its traditional off-season. The relaxation of export restrictions at this time is not expected to threaten domestic food security but will effectively alleviate pricing pressures on companies due to inventory accumulation. Urea exports are anticipated to commence in May 2026. The current domestic urea price stands at RMB 1,850 per ton, with a price differential of over RMB 3,000 per ton compared to international markets.