We cut our FY17E/18E EPS to RMB0.24/0.46 by 46%/34% after lowering the utilization rate for potash production in FY17E/18E to 75%/80%; however, we maintain our Hold rating with a DCF-based target price of RMB17.5 (assuming 7.2% WACC and 2% terminal growth), which implies 1.19/1.16 FY17E/18E P/B. We believe most of the negative effects have been factored in, and the potash utilization should start to improve as demand picks up. Key downside risks: 1) sluggish chemical prices and soft demand could lead to lower product sales; and 2) unfavorable government policy. Key upside risks: 1) better-than- expected potash prices; and 2) faster-than-expected demand growth.