Yangnong Chemical(SH:600486) Xin Lang Cai Jing·2025-10-28 10:24Core Viewpoint - The company reported Q3 results that met expectations, but the prices of most main products remain under pressure. The outlook for the Liaoning Youchuang project is positive as it ramps up production [1] Financial Performance - For the first three quarters of 2025, the company achieved revenue of 9.156 billion yuan, a year-on-year increase of 14.2%, and a net profit attributable to shareholders of 1.055 billion yuan, up 2.9% year-on-year [1] - In Q3 alone, revenue was 2.923 billion yuan, reflecting a year-on-year increase of 26.1% but a quarter-on-quarter decrease of 2.3%. The net profit attributable to shareholders was 250 million yuan, down 5% year-on-year and down 32.7% quarter-on-quarter [1] - The company adjusted its profit forecasts for 2025, expecting net profits of 1.265 billion yuan (down 1.45 billion), 1.6 billion yuan, and 1.823 billion yuan for 2026-2027, with corresponding EPS of 3.12, 3.95, and 4.50 yuan per share [1] Product Pricing and Sales - In the first nine months of 2025, the company sold 86,300 tons of raw materials and 33,200 tons of formulations, with year-on-year changes of +13.5% and -3.1% respectively. Revenue from raw materials was 5.409 billion yuan (up 12.2%), while formulations generated 1.323 billion yuan (down 4.6%) [2] - The average selling price for raw materials was 62,700 yuan/ton, down 1.1% year-on-year, while formulations averaged 39,800 yuan/ton, down 1.6% year-on-year [2] Profitability - The company's gross profit margin and net profit margin for the first three quarters of 2025 were 22.35% and 11.53%, down 1.67 and 1.27 percentage points year-on-year [2] - In Q3, the gross profit margin was 19.61%, and the net profit margin was 8.54%, reflecting a quarter-on-quarter decline of 2.94 and 3.86 percentage points [2] Market Conditions - As of October 26, the raw material price index reported 74.92 points, up 1.12% year-on-year, with 70% of tracked products showing a year-on-year price decline [2] - The company is experiencing a supply-demand imbalance in most pesticide products, with prices remaining at low levels. However, it is expected to maintain stable operational performance through cost reduction and efficiency improvements [2]