Sichuan Guoguang Agrochemical (SZ:002749) EBSCN·2025-03-27 08:45Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Insights - In 2024, the company achieved revenue of 1.986 billion yuan, a year-on-year increase of 6.79%, and a net profit attributable to shareholders of 367 million yuan, up 21.52% year-on-year [2]. - The company's gross margin significantly improved in 2024, driven by a favorable sales structure and a decrease in raw material prices, with the agricultural business gross margin rising by 5.3 percentage points to 49.2% [3]. - The company is focusing on promoting comprehensive crop solutions, with new production capacities for formulations and water-soluble fertilizers expected to come online in 2025 [4]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 551 million yuan, a year-on-year increase of 7.69%, and a net profit of 97 million yuan, up 22.49% year-on-year [2]. - The agricultural business generated revenue of 1.370 billion yuan, a growth of approximately 7.9%, with plant growth regulators contributing 880 million yuan, up 11.3% [3]. - The company forecasts net profits of 428 million yuan, 526 million yuan, and 634 million yuan for 2025, 2026, and 2027, respectively [5]. Production Capacity and Strategy - The company currently has an annual production capacity of 14,500 tons for pesticide raw materials, 88,900 tons for pesticide formulations, and 16,000 tons for water-soluble fertilizers [4]. - The company is implementing crop management solutions focusing on key regions and crops, enhancing the promotion of its comprehensive solutions through strengthened core distributor relationships [4]. Profitability and Valuation - The overall gross margin for the company is projected to improve, with estimates of 47.0% for 2025 and 47.3% for 2026 [13]. - The report provides a valuation summary indicating a P/E ratio decreasing from 21 in 2023 to 11 in 2027, reflecting expected growth in earnings [6][14].