Yangnong Chemical(SH:600486) Shenwan Hongyuan Securities·2025-03-28 06:46Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [9]. Core Views - The company reported annual performance in line with expectations, with the Huludao base expected to drive new growth and a recovery in pyrethroid prices anticipated [1][9]. - The company is positioned as a leading producer in the global pyrethroid market, with significant market share domestically and internationally [9]. - The report highlights the construction of the Huludao project, which is expected to contribute significantly to future revenue, with an estimated annual revenue of 4.083 billion yuan post-completion [9]. Financial Data Summary - For 2024, the company achieved a revenue of 10.435 billion yuan, a year-on-year decrease of 9%, and a net profit of 1.202 billion yuan, down 23% year-on-year [9]. - The projected revenues for 2025 and 2026 are 12.073 billion yuan and 13.808 billion yuan, respectively, with expected net profits of 1.498 billion yuan and 1.808 billion yuan [8][10]. - The company's gross margin for 2024 was reported at 23.11%, a decrease of 2.49 percentage points year-on-year [9]. Market Data - As of March 27, 2025, the closing price of the company's stock was 55.70 yuan, with a market capitalization of 22.44 billion yuan [2]. - The stock has a price-to-earnings ratio (PE) of 19 for 2024, projected to decrease to 15 for 2025 and further to 13 for 2026 [8][9]. Product Pricing and Sales - The average selling price of key products is currently at historical lows, with significant price drops observed in 2024 [9]. - The report notes that the average selling price for the company's main products, such as bifenthrin and glyphosate, has decreased significantly year-on-year [9].