LMGF(002734) 海通国际·2025-01-22 08:50Investment Rating - The report maintains an "OUTPERFORM" rating for the company with a target price of RMB 9.80, based on a current price of RMB 8.20 [2][11]. Core Insights - The company is a leading domestic fungicide manufacturer, focusing on biosynthesis and experiencing a rebound in the prices of its main products [7][10]. - Key products such as Chlorothalonil, Abamectin, and Mevinphos have seen significant price increases due to strong demand and low inventory levels [8][9]. - The company is expanding its product portfolio and enhancing its capabilities in biosynthesis, aiming to innovate and upgrade traditional production processes [10][11]. Financial Performance Summary - Revenue projections for 2024, 2025, and 2026 are RMB 4.25 billion, RMB 4.54 billion, and RMB 4.73 billion respectively, with a net profit forecast of RMB 78 million, RMB 178 million, and RMB 229 million for the same years [4][6]. - The gross profit margin is expected to improve from 17.0% in 2023 to 19.3% by 2026 [6]. - Earnings per share (EPS) are projected to rise from RMB 0.17 in 2023 to RMB 0.63 in 2026 [6][11]. Product and Market Dynamics - The company has a diverse product range, including a strong insecticide portfolio and a growing herbicide segment, with significant production capacities established [9][10]. - The price of Chlorothalonil has increased by approximately 70% due to high overseas demand and low inventory, indicating a favorable market condition for the company [8]. - The company is strategically positioned to capitalize on industry trends towards biosynthesis, with plans to establish various technological platforms for product development [10].