Yangnong Chemical(600486) 新浪财经·2025-03-31 00:28Core Viewpoint - The company reported a decline in revenue and net profit for 2024, primarily due to falling product prices, although there are signs of price stabilization in Q4 [1][2]. Financial Performance - In 2024, the company achieved revenue of 10.43 billion yuan, a year-on-year decrease of 9.1% - The net profit attributable to shareholders was 1.2 billion yuan, down 23.2% year-on-year - The non-recurring net profit was 1.16 billion yuan, a decrease of 22.8% year-on-year - In Q4 2024, the company recorded revenue of 2.42 billion yuan, an increase of 9.8% year-on-year and 4.4% quarter-on-quarter - The net profit for Q4 was 180 million yuan, down 13.7% year-on-year and 32.9% quarter-on-quarter [1]. Product Pricing and Sales - The company's raw material sales volume reached 100,000 tons in 2024, an increase of 3.5% year-on-year, with an average price of 64,000 yuan/ton, down 16.0% year-on-year - The sales volume of formulations was 36,000 tons, up 1.8% year-on-year, with an average price of 43,000 yuan/ton, down 9.4% year-on-year - In Q4 2024, the average price of raw materials was 67,000 yuan/ton, up 0.7% year-on-year and 16.9% quarter-on-quarter, indicating a recovery trend [2]. Industry Overview - The agricultural pesticide industry is experiencing an oversupply, transitioning from inventory reduction to capacity reduction - In 2024, the production of chemical pesticide raw materials in China reached 3.675 million tons, an increase of 37.6% year-on-year, driven by new capacity coming online since 2022 - The market is expected to shift towards capacity reduction in 2025 due to ongoing expansions by Indian companies and declining agricultural product prices, leading to increased competition in the pesticide industry [3]. Dividend Distribution - The company proposed a cash dividend of 0.68 yuan per share (before tax), totaling 277 million yuan, which represents 23% of the net profit attributable to shareholders - Additionally, the company plans to distribute cash dividends in mid-2025, amounting to no less than 8% of the net profit attributable to shareholders, aimed at boosting investor confidence amid a low industry outlook [4]. Project Development - The Huludao project is progressing rapidly, with the first phase completed six months ahead of schedule - The company announced a capital increase of 700 million yuan to its wholly-owned subsidiary, Liaoning Youchuang, using its own funds - The project is expected to produce qualified products and will support the company's balanced development across its northern and southern bases, contributing to future performance [5]. Investment Outlook - The company forecasts net profits attributable to shareholders of 1.412 billion yuan, 1.665 billion yuan, and 2.027 billion yuan for 2025-2027, respectively, with corresponding PE ratios of 15, 13, and 11 times [6].