Sichuan Guoguang Agrochemical (SZ:002749) EBSCN·2024-08-16 06:42Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [6]. Core Views - The company achieved a revenue of 1.042 billion yuan in the first half of 2024, representing a year-on-year growth of 9.3%, and a net profit of 217 million yuan, up 28.9% year-on-year [1]. - The company is expanding its market channels, with over 6,200 channel customers as of June 2024, a growth of approximately 7.7% compared to the end of 2023 [1]. - The gross margin for the pesticide business improved to 49.9%, an increase of 6.8 percentage points year-on-year, benefiting from a decline in raw material prices [1]. - The company is actively promoting crop growth regulators and comprehensive crop solutions, which have shown significant yield increases, such as a 19.4% increase in wheat yield in a recent demonstration [2]. - The company forecasts net profits of 360 million, 428 million, and 526 million yuan for 2024, 2025, and 2026 respectively, reflecting a positive growth trajectory [2]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 1.042 billion yuan, with a net profit of 217 million yuan, marking a 28.9% increase year-on-year [1]. - The second quarter of 2024 saw a revenue of 676 million yuan, a year-on-year increase of 9.3% and a quarter-on-quarter increase of 84.8% [1]. - The company plans to distribute a cash dividend of 1.4 billion yuan, with a payout ratio of 64.6% [1]. Market Expansion - The company is focusing on expanding its market channels, achieving a customer base of over 6,200, which is a 7.7% increase from the previous year [1]. - The pesticide and fertilizer segments generated revenues of 725 million yuan and 278 million yuan respectively, with year-on-year growth rates of 9.9% and 10.3% [1]. Product Development - The company is promoting crop growth regulators and comprehensive solutions, which have gained attention from both the government and the market due to their effectiveness in increasing crop yields [2]. - A recent demonstration showed that the company's wheat solution led to an increase of 254.18 jin per mu, equating to a 19.4% yield increase [2]. Profitability Outlook - The report maintains profit forecasts for 2024-2025 and introduces a new forecast for 2026, with expected net profits of 360 million, 428 million, and 526 million yuan respectively [2].