Yangnong Chemical(600486)2024-10-30 03:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has achieved year-on-year growth in Q3, supported by the YouChuang project for future growth [1] - The company's revenue for the first three quarters reached 8.016 billion yuan, a year-on-year decrease of 13.57%, while the net profit attributable to shareholders was 1.026 billion yuan, down 24.61% year-on-year [1] - The average selling price of raw materials has decreased significantly, with the average price of raw materials at 63,400 yuan per ton, down 20.13% year-on-year [1] - The agricultural chemical raw material prices are expected to stabilize at the bottom, with market demand gradually recovering [1][3] Financial Performance Summary - In Q3 2024, the company achieved total revenue of 2.317 billion yuan, a year-on-year increase of 4.98% but a quarter-on-quarter decrease of 8.16% [1] - The net profit attributable to shareholders in Q3 2024 was 263 million yuan, up 10.87% year-on-year but down 21.34% quarter-on-quarter [1] - The company’s net profit for the first three quarters was 1.026 billion yuan, with a significant decline attributed to the drop in main product prices [1] - The projected net profits for 2024-2026 are 1.294 billion, 1.582 billion, and 1.861 billion yuan respectively, with corresponding P/E ratios of 19X, 15X, and 13X [3][5] Project Development - The YouChuang project has entered trial production, optimizing the layout to support long-term growth [1][2] - The project aims to address bottlenecks faced by the subsidiary Shenyang Kechuang and enhance the company's production capabilities [1][2]