Core Viewpoint - Yangnong Chemical (600486) has reported that the construction of the Huludao Phase I project has progressed smoothly and exceeded expectations since its commencement, entering trial production last year [1] Group 1 - The Huludao Phase I project has been under construction and is progressing well [1] - The project has entered the trial production phase, indicating a significant milestone in its development [1] - Product debugging has gradually completed capacity ramp-up, leading to stable overall operations and a good start [1]

Group 1 - The core viewpoint is that the agricultural pesticide industry is currently in a cyclical adjustment phase, with stable demand for some herbicide products but overall abundant supply capacity [1] - Looking ahead to next year, the industry has significant capacity elasticity, and the ample supply is expected to constrain price increases, leading to a forecast of continued bottom oscillation in pesticide product prices [1] - The company maintains a cautiously optimistic attitude towards the industry's future trends and plans to respond to market changes steadily by optimizing product structure and enhancing cost competitiveness [1]

证券日报网12月16日讯扬农化工（600486）在12月12日回答调研者提问时表示，公司创制农药氟螨双醚 的登记申请正在等待有关部门批准。公司已提前开展工业化生产的各项准备工作，一旦获得登记批准， 可迅速实现生产衔接与市场投放。公司预计该产品将于2026年推向市场，但具体上市时间仍取决于登记 审批进展。 ...

Core Viewpoint - Yangnong Chemical (600486) is currently in the planning stage for its Huludao Phase II project, which will have a distinct product positioning compared to Phase I [1] Group 1: Project Overview - Phase I of the project focuses on accommodating the relocation of Shenyang's innovative products, enhancing intermediate support, and optimizing production layout, characterized by a large number of products and high investment intensity [1] - Phase II will concentrate on the high-quality transformation of existing and in-development products, with an emphasis on increasing product added value and technical content [1] Group 2: Development Strategy - The project is a key focus for investors and is crucial for the company's future development [1] - The company is accelerating relevant technology research and development processes and plans to steadily advance the construction of Phase II based on market and R&D progress [1] - The company believes that in the current market environment, investments should be made cautiously to ensure that actual investments can truly translate into high-quality development momentum [1]

Core Viewpoint - The company anticipates that product prices in the coming year will remain below the estimates in the feasibility study report, with some varieties experiencing significant price drops [1] Group 1: Market Environment and Price Trends - The company indicates that the current market environment suggests a continued decline in product prices, which may negatively impact investment returns [1] - Certain product varieties have seen excessive price declines, raising concerns about profitability [1] Group 2: Project Development and Investment Returns - Despite smooth project construction and expected capacity release, the decline in prices poses a challenge to investment return rates [1] - The investment return rate of the Huludao project will largely depend on future market supply and demand dynamics as well as price trends [1] Group 3: Operational Strategy - The company plans to maintain a full production and sales strategy while continuously optimizing operations and cost control [1] - Ensuring product cost competitiveness is a priority for the company to drive high-quality development through quality investments [1]

证券日报网12月16日讯扬农化工（600486）在12月12日回答调研者提问时表示，氟唑菌酰羟胺已于去年 成功产出合格产品，并于今年开展批量生产。该产品是先正达的专利化合物，目前该产品主要根据先正 达的订单需求进行生产。随着先正达在全球范围内的登记布局不断推进，预计未来相关订单需求将逐步 提升。该产品是先正达的专利化合物，按照定制加工模式协商定价。 ...

Core Viewpoint - The recent increase in the market price of pyrethroid products is influenced by changes in supply and demand dynamics as well as raw material costs, which presents an opportunity for the company to improve profitability and support sustainable industry development [1] Company Summary - The company possesses a complete industrial chain and supporting capabilities for pyrethroid products, enabling it to effectively respond to market fluctuations and seize price recovery opportunities [1] - Previous prices for products such as Kungfu pyrethroid and biphenyl pyrethroid were at historical lows, and the current price rebound is expected to enhance overall industry profitability [1] - The company plans to closely monitor market supply and demand changes, dynamically optimize sales strategies based on production capacity and order status, and strive for reasonable profit margins while maintaining customer relationships and market share [1] - Long-term product prices will continue to be determined by market supply and demand [1] - The company aims to enhance competitiveness through technological innovation and cost control, actively participating in market competition [1]

证券日报网12月16日讯扬农化工（600486）在12月12日回答调研者提问时表示，整体上没有较大变化。 中国中化与先正达集团作为公司控股股东，在遵循上市公司治理规则的基础上，充分尊重扬农化工的独 立法人地位与经营自主权，持续推进公司规范治理、合规运行，公司重大决策依据公司章程及董事会决 议执行，日常经营管理始终保持独立运作。公司始终面向全球市场开展业务，为全球客户提供优质服 务，致力于实现可持续高质量发展。 ...

Core Insights - The chemical industry report indicates a mixed performance in chemical product prices, with 42 products increasing in price, 37 decreasing, and 21 remaining stable during the week of December 8-14 [1][2] - The report suggests focusing on undervalued leading companies, the impact of "anti-involution" on supply in related sub-industries, and the importance of self-sufficiency in electronic materials and certain new energy materials amid price increases [1][6] Industry Dynamics - In the week of December 8-14, 47% of tracked chemical products saw a month-on-month price increase, while 44% experienced a decrease, and 9% remained unchanged [2] - The top price increases were noted in nitric acid, sulfuric acid, raw salt, bisphenol A, and TDI, while the largest declines were in PVA, LLDPE, trichloroethylene, and NYMEX natural gas [2] Oil Market Overview - International oil prices fell, with WTI crude oil futures closing at $57.44 per barrel (down 2.45%) and Brent crude at $61.12 per barrel (down 2.19%) [3] - The U.S. oil production averaged 13.853 million barrels per day, an increase of 38,000 barrels from the previous week and 222,000 barrels from the same period last year [3] - U.S. oil demand rose to an average of 21.082 million barrels per day, with gasoline demand increasing to 8.456 million barrels per day [3] TDI Market Analysis - TDI prices increased to an average of 14,713 yuan/ton, up 2.49% week-on-week and 5.51% month-on-month [4] - TDI production decreased, with an overall operating rate of approximately 58.55%, and various factories experiencing operational issues [4] - Average costs for TDI were 11,819 yuan/ton, down 0.92% week-on-week, while average gross profit rose by 31.79% week-on-week [4] Methionine Market Analysis - Methionine prices decreased to an average of 17,900 yuan/ton, down 2.45% week-on-week and 9.14% month-on-month [5] - The production remained stable at 18,350 tons, with an operating rate of 89.42% [5] - The cost of methionine was 13,853.73 yuan/ton, with a gross profit margin of 23.67% [5] Valuation Metrics - As of December 12, the TTM price-to-earnings ratio for the SW basic chemical sector was 24.14, and the price-to-book ratio was 2.19 [6] - The SW oil and petrochemical sector had a TTM price-to-earnings ratio of 12.85 and a price-to-book ratio of 1.24 [6] Investment Recommendations - The report recommends focusing on undervalued leading companies, sectors benefiting from policy support, and emerging fields such as semiconductor materials and new energy materials [6] - Specific companies highlighted for investment include Wanhua Chemical, Hualu Hengsheng, and others [6][7]

Investment Rating - The report rates the pesticide industry as "Outperform the Market" [1][5] Core Insights - The Chinese pesticide industry is expected to transition from "Me too" to "Me better" in terms of innovation and product development [1][2] - The global pesticide market is projected to reach approximately $77.2 billion in 2024, with a compound annual growth rate (CAGR) of 2.35% over the next decade [1][13] - Non-patented pesticides dominate the market, accounting for 93% of the global pesticide market share, while patented pesticides hold only 7% [1][14] Summary by Sections Pesticide Market Overview - The global pesticide market is expected to be approximately $77.2 billion in 2024, with agricultural pesticides making up $70.1 billion and non-agricultural pesticides $7.1 billion [1][13] - The market share of herbicides, fungicides, and insecticides in the global crop protection market is 47.20%, 24.96%, and 24.97% respectively [1][13] New Pesticide Development Challenges - The difficulty of developing new pesticides has increased significantly, with the average cost of bringing a new pesticide to market now around $300 million and taking approximately 12 years [1][45] - The number of new active ingredients introduced globally every decade has decreased, indicating a growing challenge in pesticide innovation [1][43] China's Pesticide Industry Strength - China has become the world's largest pesticide producer and exporter, with nearly 70% of global active ingredient production and 90% of its production being exported [2][2] - From 2020 to 2024, China accounted for 51.61% of the new pesticides developed globally, establishing itself as a key player in pesticide innovation [2][2] Investment Recommendations - The report recommends focusing on domestic pesticide companies that are actively advancing new pesticide development, including: - Yangnong Chemical: Holds 12 new pesticides with complete independent intellectual property rights [3][4] - Lier Chemical: Promoting patented plant immune activator [3][4] - Limin Chemical: Collaborating with BASF to apply AI in pesticide development [3][4] - Jiangshan Chemical: Preparing for the industrialization of a new herbicide [3][4] Key Company Profit Forecasts - Yangnong Chemical: Rated "Outperform the Market" with an estimated EPS of 3.33 in 2025 and a PE ratio of 19.7 [4] - Lier Chemical: Rated "Outperform the Market" with an estimated EPS of 0.62 in 2025 and a PE ratio of 21.0 [4] - Limin Chemical: Rated "Outperform the Market" with an estimated EPS of 1.26 in 2025 and a PE ratio of 12.7 [4] - Jiangshan Chemical: Rated "Outperform the Market" with an estimated EPS of 1.41 in 2025 and a PE ratio of 16.1 [4]