Investment Rating - The report maintains a "Buy" investment rating for the company [10] Core Views - The agricultural pesticide market is experiencing a downturn, leading to significant pressure on the company's performance [5] - Despite a 10.52% increase in sales volume for pesticide and intermediate products in 2024, the decline in prices has resulted in a revenue drop of 17.17% for pesticides and 25.35% for intermediates [5] - The company has a comprehensive production system for pesticides, with a focus on self-research and technological upgrades to enhance efficiency and expand its product range [7][9] Summary by Sections Market Performance - The company reported a total revenue of 4.643 billion yuan in 2024, a year-on-year decrease of 20.88%, and a net profit of 779 million yuan, down 45.88% [4] Financial Metrics - The company's operating cash flow net amount was 535 million yuan in 2024, a decrease of 26.92% year-on-year [6] - The forecasted net profits for 2025, 2026, and 2027 are 817 million yuan, 1.003 billion yuan, and 1.128 billion yuan respectively, with corresponding PE ratios of 12.2, 9.9, and 8.8 [10][12] Industry Analysis - The global pesticide market has been affected by supply-demand imbalances and price fluctuations since the second half of 2022, impacting the company's performance [5] - The average price of the company's pesticide raw materials fell by 33.78% to 25,800 yuan per ton, while intermediate products dropped by 34.75% to 2,219 yuan per ton [5] Strategic Initiatives - The company aims to leverage its unique resources in phosgene production to enhance its product offerings and market competitiveness [9] - Plans include expanding into new materials and pharmaceuticals, as well as seeking strategic partnerships with international pesticide companies to increase market presence [9]

Investment Rating - The report maintains a "Buy" investment rating for the company [10] Core Views - The agricultural pesticide market is experiencing a downturn, leading to significant pressure on the company's performance [5] - Despite a 10.52% increase in sales volume for pesticide and intermediate products in 2024, the decline in prices has resulted in a revenue drop of 17.17% for pesticides and 25.35% for intermediates [5] - The company is focusing on self-innovation and technological upgrades to enhance its competitive edge and expand its product offerings [7][9] Summary by Sections Market Performance - The company reported a total revenue of 4.643 billion yuan in 2024, a year-on-year decrease of 20.88%, and a net profit of 779 million yuan, down 45.88% [4] Financial Metrics - The company's operating cash flow net amount was 535 million yuan in 2024, a decrease of 26.92% year-on-year [6] - The forecasted net profits for 2025, 2026, and 2027 are 817 million yuan, 1.003 billion yuan, and 1.128 billion yuan respectively, with corresponding PE ratios of 12.2, 9.9, and 8.8 [10][12] Industry Analysis - The global pesticide market is facing challenges due to supply-demand imbalances and price fluctuations, which have adversely affected the company's performance [5] - The average price of the company's pesticide raw materials has decreased by 33.78% to 25,800 yuan per ton, while the average price of intermediates has dropped by 34.75% to 2,219 yuan per ton [5] Strategic Initiatives - The company aims to leverage its extensive chlorine gas resources to enhance its product range and improve the value-added aspects of its pesticide products [9] - Plans include expanding into new materials and pharmaceuticals, as well as seeking strategic partnerships with international pesticide companies to increase market presence [9]

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 14.4 CNY [1][6]. Core Views - The company is expected to benefit from a price turning point for its core product, Mancozeb, and is anticipated to see contributions from new products in the future [1][6]. - The agricultural pesticide industry is showing signs of recovery, with improved sales volumes and pricing expected in the coming periods [6][7]. Financial Summary - **Revenue Forecast**: - 2024A: 4,643 million CNY, -20.9% YoY - 2025E: 5,367 million CNY, +15.6% YoY - 2026E: 6,092 million CNY, +13.5% YoY - 2027E: 6,849 million CNY, +12.4% YoY [2][7] - **Net Profit Forecast**: - 2024A: 779 million CNY, -45.9% YoY - 2025E: 875 million CNY, +12.4% YoY - 2026E: 1,066 million CNY, +21.9% YoY - 2027E: 1,237 million CNY, +16.0% YoY [2][7] - **Earnings Per Share (EPS)**: - 2024A: 0.86 CNY - 2025E: 0.96 CNY - 2026E: 1.17 CNY - 2027E: 1.36 CNY [2][7] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio is projected to be 13, 11, 9, and 8 for 2024A, 2025E, 2026E, and 2027E respectively [2][7]. Market Performance - The company has experienced a significant decline of 34% over the past year, compared to the Shanghai Composite Index [5]. Product Insights - The company’s main pesticide raw materials saw a sales volume increase of 37.16% YoY in 2024, despite a price drop of 33.78% [6][7]. - The price of Mancozeb is expected to rise from 32,800 CNY/ton to 37,000 CNY/ton, indicating a positive trend for the company's performance [6][7]. Investment Recommendations - The company is positioned to leverage its integrated capabilities and cost advantages, with a strong return on equity (ROE) and significant cash reserves for capital expenditures [6][7]. - The adjusted profit expectations for 2025-2027 are 875 million CNY, 1,066 million CNY, and 1,237 million CNY respectively, with a corresponding P/E of 11, 9, and 8 [6][7].

Investment Rating - The report indicates a positive outlook for the chemical industry, suggesting a new cycle may begin due to improved domestic supply and demand, increased global market share, and declining crude oil prices [3][4]. Core Viewpoints - The chemical industry is expected to enter a new cycle driven by domestic supply-demand improvements and global market share growth, despite potential short-term impacts from overseas demand [3][5]. - The report highlights that the supply side is gradually improving due to reduced fixed asset investment growth and government policies aimed at curbing excessive competition [5][10]. - On the demand side, domestic consumption is anticipated to recover steadily, supported by government initiatives to boost consumption and stabilize the economy [26][33]. - Cost factors are favorable, with significant declines in international crude oil and domestic coal prices, which will support the profitability of chemical products [42][49]. - The report recommends specific companies within various segments of the chemical industry, including refrigerants, amino acids, military and new materials, and fertilizers, indicating potential investment opportunities [5][57]. Summary by Sections Supply Side - The report notes that the chemical industry has faced profitability pressures since 2022, but the current production cycle is nearing its end, which may lead to gradual improvement in profitability as capacity is digested [11][12]. - China's global market share in chemical products has been steadily increasing, with 2023 figures showing a 43.1% share of global sales [25][20]. Demand Side - The report emphasizes that domestic demand is expected to recover, aided by government policies aimed at stimulating consumption and investment [26][33]. - The real estate sector shows signs of stabilization, which could further support demand for chemical products [33]. Cost Side - The report highlights a significant decline in crude oil prices, with Brent crude falling by 14.71% since the beginning of 2025, which is expected to positively impact the cost structure of the chemical industry [42][38]. - Domestic coal and natural gas prices have also shown a downward trend, enhancing the cost competitiveness of chemical products [49][47]. Valuation - The report indicates that the valuation of the basic chemical and petrochemical sectors is at historical lows, suggesting substantial room for recovery as market conditions improve [54][50].

安徽广信农化股份有限公司 2024 年年度股东大会会议材料 603599 二零二五年五月 安徽广信农化股份有限公司 2024 年年度股东大会会议议程 现场会议时间：2025 年 5 月 23 日，下午 14 点 00 分 网络投票时间：采用上海证券交易所网络投票系统，通过交易系统投票平 台的投票时间为股东大会召开当日的交易时间段，即 9:15-9:25，9:30- 11:30，13:00-15:00；通过互联网投票平台的投票时间为股东大会召开当日的 9:15-15:00。 现场会议地点：广信股份总部大楼 3 楼会议室 参会人员：股东及股东代表、董事、监事、高级管理人员、公司聘请的律 师 会议议程： 一、主持人宣布会议开始 二、介绍参加会议的股东及股东代表、董事、监事、高管人员、律师 三、审议会议议题 1、听取并审议《公司 2024 年度董事会工作报告》； 2、听取并审议《公司 2024 年度监事会工作报告》； 3、听取并审议《公司 2024 年年度报告》全文及摘要； 4、听取并审议《公司 2024 年独立董事年度述职报告》； 5、听取并审议《关于续聘公司年度财务审计机构及内部控制审计机构的议 案》； 6、听取 ...

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company is experiencing pressure on its performance in Q1 2025, with expectations for industry recovery [1] - The company's revenue for 2024 was 4,643 million yuan, a year-on-year decrease of 20.9%, and the net profit attributable to shareholders was 779 million yuan, down 45.9% year-on-year [5][6] - The report indicates that the company's agricultural pesticide revenue for 2024 was 2,906 million yuan, down 17% year-on-year, with a gross margin of 31.20% [6] - The report anticipates a gradual recovery in demand and pricing for certain products in Q1 2025, although some products continue to face pricing pressure [6] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 4,878 million yuan, with a projected year-on-year growth of 5.1% [5] - The net profit attributable to shareholders for 2025 is estimated at 740 million yuan, reflecting a decrease of 5.0% year-on-year [5] - The report projects earnings per share of 0.81 yuan for 2025, with a price-to-earnings ratio of 13 [5] - The gross margin is expected to be 28.4% in 2025, slightly down from previous years [5] - The report includes a detailed breakdown of revenue and gross margin forecasts for the agricultural and fine chemical segments from 2025 to 2027 [6]

Core Viewpoint - The dichlorobenzene industry in China is experiencing steady growth, driven by increasing demand in downstream applications such as agriculture and pharmaceuticals, with the market size exceeding 6 billion RMB [1][10]. Industry Overview - The annual production and consumption of dichlorobenzene in China rank among the highest globally, with a market size surpassing 6 billion RMB [1][10]. - The industry has evolved through three stages: initial development (1950s-1980s), rapid growth (1990s-early 2000s), and transformation and upgrading (2000s-present) [6]. Industry Chain Analysis - The dichlorobenzene industry chain includes upstream raw materials (benzene and chlorine), midstream production, and downstream applications [4]. - Upstream supply stability is enhanced by the rapid growth of pure benzene production capacity, projected to reach 25.78 million tons by 2024 [8]. Downstream Applications - The agricultural sector is the largest consumer of dichlorobenzene, accounting for 38% of its usage, primarily as an intermediate in pesticide production [12]. - Other significant applications include dyes and intermediates (23%), pharmaceuticals (12%), and various products like moth repellents and air fresheners (27%) [12]. Key Companies in the Industry - Major players include Yangnong Chemical, Hanjin Technology, and Sinochem International, which leverage strong supply chain integration and technological innovation to maintain market leadership [14][16]. - Yangnong Chemical focuses on high-end pesticide markets, while Hanjin Technology emphasizes diversified development and environmental production [16][18]. Future Development Trends - Production process optimization is crucial for industry advancement, with companies adopting advanced catalytic and separation technologies to enhance efficiency and product quality [20]. - New product development is essential for market expansion, with firms investing in high-value derivatives and customized products to meet specific market needs [21]. - Increasing environmental regulations necessitate greater investment in clean production technologies and safety management to ensure sustainable development [22].

Investment Rating - The investment rating for the company is maintained as "Accumulate" with a target price of 12.35 RMB [7][8]. Core Views - The company reported a revenue of 4.64 billion RMB in 2024, a year-on-year decrease of 21%, and a net profit attributable to the parent company of 780 million RMB, down 46% year-on-year. The fourth quarter of 2024 saw a net profit of 200 million RMB, which was an increase of 77% year-on-year and 26% quarter-on-quarter. The company plans to distribute a cash dividend of 0.27 RMB per share for 2024, with a payout ratio of 32% [1][2]. - The agricultural chemical prices are currently in a bottom consolidation phase, and there is an expectation for improvement in market conditions in the future, leading to a maintained "Accumulate" rating [1][4]. Summary by Sections Financial Performance - In 2024, the company's main agricultural chemical revenue was 2.18 billion RMB, down 9% year-on-year, with a sales volume of 85,000 tons, up 37% year-on-year, and an average price of 26,000 RMB per ton, down 34% year-on-year. The overall gross margin decreased by 7.1 percentage points to 30.7% due to market demand issues and increased shipping costs [2][3]. - For Q1 2025, the main agricultural chemical revenue was 480 million RMB, up 8% year-on-year, with an average price increase of 14% to 32,000 RMB per ton. The main agricultural intermediate revenue was 450 million RMB, down 4% year-on-year, with a sales volume increase of 34% to 215,000 tons [3]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been adjusted downwards to 860 million RMB and 980 million RMB, respectively, reflecting a decrease of 16% and 27%. The net profit for 2027 is projected to be 1.11 billion RMB, with expected growth rates of 11%, 14%, and 13% for 2025 to 2027 [4][6]. - The estimated EPS for 2025, 2026, and 2027 are 0.95 RMB, 1.08 RMB, and 1.22 RMB, respectively. The company is given a valuation of 13 times PE for 2025, leading to a target price of 12.35 RMB [4][6].

Summary of the Conference Call for Guangxin Co., Ltd. Industry Overview - The pesticide industry entered a downward cycle in the second half of 2022, with rising shipping costs impacting gross margins in Q2 2024. [2][3] - Current industry inventory is relatively low, indicating a bottoming phase. Downstream customers are adopting a just-in-time purchasing strategy due to economic conditions and trade wars, limiting significant price adjustments. [2][6] - The pesticide and agrochemical industry has been in a downward cycle for several years, with expectations of gradual recovery by 2025, although this remains uncertain due to global trade tensions and manufacturing pressures. [30] Company Performance - Guangxin Co., Ltd. reported a revenue of 4.643 billion yuan and a net profit of 779 million yuan for 2024, with Q1 2025 revenue at 982 million yuan and net profit at 161 million yuan. [3] - The company faces challenges from declining profits in glyphosate and price wars in the polysilicon market. [2][4] - Non-recurring gains in Q1 2025 were primarily from investment income of approximately 34 million yuan. [4][14] Product Insights - Glyphosate, while currently generating minimal profit, plays a crucial role in the company's chlorine and other product cost structures. [3][4] - New products like isoxaben and imidacloprid are expected to contribute positively to performance in Q2 2024. [2][5] - The company plans to expand its market presence in India to increase demand for nitrobenzene phenol, aiming to reduce costs and improve profitability. [10] Market Dynamics - The glyphosate market is under significant supply pressure, with many new capacities expected in 2025. [13][29] - The company’s direct exports to the U.S. account for about 5% of total revenue, with limited impact from tariffs due to glyphosate being on the mutual exemption list. [8] - The nitrobenzene phenol market is experiencing oversupply, with major players including Yanglong Group and Jiangsu Nanhua. [10] Competitive Landscape - Guangxin Co., Ltd. maintains a strong market position but faces competition from other manufacturers, some of which are reducing their investments in glyphosate. [2][4] - The company aims to collaborate with other firms to stabilize the market and mitigate price wars. [9] Strategic Initiatives - The company is focusing on domestic technological upgrades and reducing dividend payouts to manage financial pressures and seek investment opportunities. [4][19] - Plans for expanding production capacities for new products like isoxaben and imidacloprid are in place, with expectations for full production in the near future. [16][27] Future Outlook - The company anticipates a better market performance in Q2 2025, driven by improved sales of fungicides. [24] - The overall recovery of the market is contingent on supply-side changes, particularly if smaller players exit the market. [32] - The company is cautious about overseas expansion due to political risks, preferring to focus on stable domestic investments. [18][31] Conclusion - Guangxin Co., Ltd. is navigating a challenging market environment with strategic adjustments in product offerings and market focus. The company is poised for potential recovery as it adapts to changing market dynamics and seeks to optimize its operational efficiencies. [2][30]

审计报告 安徽广信农化股份有限公司 容诚审字[2025]230Z2350 号 容诚会计师事务所(特殊普通合伙) 中国·北京 目 录 | 序号 | 容 内 | 页码 | | --- | --- | --- | | 1 | 审计报告 | 1-5 | | 2 | 合并资产负债表 | 1 | | 3 | 合并利润表 | 2 | | 4 | 合并现金流量表 | 3 | | 5 | 合并所有者权益变动表 | 4-5 | | 6 | 母公司资产负债表 | 6 | | 7 | 母公司利润表 | 7 | | 8 | 母公司现金流量表 | 8 | | 9 | 母公司所有者权益变动表 | 9-10 | | 10 | 财务报表附注 | 11 - 121 | 容诚会计师事务所(特殊普通合伙) 总所：北京市西城区阜成门外大街 22 号 1 幢 10 层 1001-1 至 / 1001-26 (100037) TEL: 010-6600 1391 FAX: 010-6600 1392 E-mail:bj@rsmchina.com.cn https//www.rsm.global/china/ 审 计 报 告 容诚审字[2025]230Z2 ...