Lier Chemical (SZ:002258) Dongxing Securities·2024-09-02 11:30Investment Rating - The report maintains a "Strong Buy" rating for Lier Chemical [2][11] Core Views - Lier Chemical reported a significant decline in revenue and profit for the first half of 2024, with revenue at 3.33 billion yuan, down 25.50% year-on-year, and net profit at 93 million yuan, down 80.63% year-on-year [2] - The core pesticide product prices have dropped significantly due to oversupply and intense market competition, leading to a 38.95% decline in revenue from the pesticide raw materials segment and a 17.64% decline in the pesticide formulation segment [2] - The industry is currently at the bottom of the cycle, with expectations for a recovery as inventory levels decrease and market demand gradually releases [2] - Lier Chemical is actively advancing its projects in the enzyme-based glyphosate sector, with a 20,000 tons/year project completed in 2023 and ongoing projects in multiple countries [2] - Future sales of glyphosate products are expected to increase as the company expands its market presence and production capacity [2] Financial Forecasts - The report adjusts the profit forecasts for Lier Chemical for 2024 to 2026, predicting net profits of 264 million yuan, 408 million yuan, and 612 million yuan respectively, with corresponding EPS of 0.33 yuan, 0.51 yuan, and 0.76 yuan [2][3] - The current price-to-earnings (P/E) ratios are projected to be 22, 14, and 9 times for the years 2024, 2025, and 2026 respectively [2][3]