Yangnong Chemical(600486)2024-11-01 02:50Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 78.48 CNY, based on a revised average PE of 24 times for comparable companies in 2024 [2][4]. Core Views - The company's performance is resilient despite the agricultural chemical industry's downturn, with a notable increase in quarterly revenue and net profit year-on-year. The ongoing construction of the Huludao project is expected to contribute to future growth [1][2]. - The company reported a revenue of 8.016 billion CNY for the first three quarters of 2024, a decrease of 13.57% year-on-year, while the net profit attributable to the parent company was 1.026 billion CNY, down 24.61% year-on-year. However, the third quarter alone saw a revenue increase of 4.98% year-on-year [1][2]. Financial Summary - For 2024, the company is projected to achieve a net profit of 1.329 billion CNY, a decrease of 15.1% compared to 2023. The revenue is expected to be 11.845 billion CNY, reflecting a slight increase of 3.2% [3][7]. - The gross margin for the first three quarters of 2024 was 24.02%, with a net margin of 12.80%. The third quarter gross margin was 23.51%, showing a year-on-year decrease of 0.40% [1][3]. - The company's operating expenses for the first three quarters were 9.53% of revenue, with management, sales, R&D, and financial expense ratios showing slight year-on-year increases [1][3]. Project Development - The Huludao project, with a total investment of approximately 4.2 billion CNY, is nearing completion. It aims to produce 15,650 tons of pesticide active ingredients and 7,000 tons of pesticide intermediates annually. The first phase began trial production in July 2024, with full construction expected to be completed by the end of November 2024 [1][2].