Yangnong Chemical(SH:600486) EBSCN·2025-03-25 10:12Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's performance is under pressure due to declining pesticide prices, with a revenue decrease of 9.09% year-on-year to 10.435 billion yuan and a net profit drop of 23.19% to 1.202 billion yuan in 2024 [1][4] - The company has completed the first phase of the Yuchuang project, producing qualified products, which positions it to benefit from the anticipated recovery in the agricultural protection industry [3][4] Summary by Sections Financial Performance - In 2024, the company achieved revenue of 10.435 billion yuan, a decrease of 9.09% year-on-year, and a net profit of 1.202 billion yuan, down 23.19% year-on-year [1] - The average selling prices for raw materials and formulations fell by 16.0% and 9.4%, respectively, leading to a revenue decline in both segments [2] - The raw material business generated revenue of 6.418 billion yuan, down 13.1%, while the formulation business brought in 1.545 billion yuan, down 7.8% [2] Project Development - The Yuchuang Phase I project in Liaoning has been completed and is in the process of trial production, with several products already meeting quality standards [3] - As of the end of 2024, the company has invested 2.78 billion yuan in the Yuchuang project, accounting for 80% of the total budget [3] Market Outlook - The agricultural protection industry is currently in a low prosperity state, but there are signs of recovery as inventory levels normalize and supply-demand dynamics improve [3] - The company is expected to benefit from the overall recovery in the agricultural protection sector as it is a leading player in the domestic pesticide industry [3][4] Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted downward due to the ongoing low price environment for pesticide products, with expected net profits of 1.378 billion yuan, 1.625 billion yuan, and 1.910 billion yuan for those years, respectively [4][5] - The report highlights that the company's product structure will be further enhanced with the full completion of the Yuchuang project, supporting the "Buy" rating [4]