Goldman Sachs has issued a research report upgrading its rating for CHINA XLX FERT (01866) from "Neutral" to "Buy." The firm's target price for the stock was significantly raised from HK$8.5 to HK$14. The report noted that the company's 2025 performance fell short of both the bank's expectations and market consensus, primarily due to lower-than-expected urea sales. However, CHINA XLX FERT proposed a final dividend of RMB 0.32 per share, implying a dividend payout ratio of 42% for 2025, a substantial increase from 22% in 2024. Goldman Sachs also revised upwards its forecasts for the company's continuing operations profit for 2026, 2027, and 2028 by 43%, 19%, and 16%, respectively. These adjustments account for anticipated higher urea prices and improved profitability from coal chemical operations, which are expected to more than offset the impact of higher benchmark thermal coal prices.