Yangnong Chemical(SH:600486) Haitong Securities·2024-09-11 06:09Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a non-GAAP net profit of 3.11 billion yuan in Q2 2024, a year-on-year decrease of 15.38%, indicating significant cost-saving measures [4][5] - For the first half of 2024, the company achieved operating revenue of 56.99 billion yuan, down 19.36% year-on-year, primarily due to a continuous decline in product sales prices [5] - The company aims to maintain market share while implementing precise services and flexible pricing strategies to capture orders [5] - The company is accelerating project construction and has entered trial production for the first phase of the Huludao project [5] Summary by Sections Financial Performance - In Q2 2024, the company achieved operating revenue of 25.23 billion yuan, a decrease of 1.70% year-on-year, with a non-GAAP net profit of 3.11 billion yuan, down 15.38% [4] - The gross margin for the first half of 2024 was 24.23%, a decline of 2.61 percentage points year-on-year, while the net profit margin was 13.40%, down 2.51 percentage points year-on-year [4] - The company completed cost savings of 226 million yuan in the first half of the year [4] Sales and Market Strategy - The company sold 50,000 tons of raw materials in the first half of 2024, a decrease of 3.27% year-on-year, with revenue of 33.23 billion yuan, down 26.40% year-on-year, and an average price drop of 23.91% [5] - The company’s subsidiary, Youjia, reported revenue of 25.2 billion yuan and a net profit of 4.57 billion yuan, down 18.3% year-on-year [5] Project Development - The company is focusing on high-quality project execution, with the first phase of the Huludao project entering trial production and the second phase in the installation stage [5] - The Jiangsu Youjia project is expanding with an annual production capacity of 3,000 tons of pyrazole ester [5] Profit Forecast - The company forecasts net profits of 13.67 billion yuan, 16.58 billion yuan, and 20.25 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 3.36 yuan, 4.08 yuan, and 4.98 yuan [5][6] - The reasonable value range for the company is estimated at 50.4 to 60.48 yuan based on a PE ratio of 15-18 times for 2024 [5]