Yangnong Chemical(600486) 华创证券·2025-03-31 04:35Investment Rating - The report maintains a "Strong Buy" rating for Yangnong Chemical, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - The company is projected to achieve stable sales growth in 2024, with potential for increased growth in 2025 in line with the industry cycle [2]. - The report highlights the resilience of Yangnong Chemical's performance despite a downturn in pesticide prices, with a notable increase in raw material sales volume [8]. - The company's innovative projects are expected to contribute to sustained growth, supported by strong sales agreements with the Sinochem Group [8]. Financial Summary - Revenue Forecast: - 2024: 10,435 million CNY, down 9.1% YoY - 2025: 13,286 million CNY, up 27.3% YoY - 2026: 15,172 million CNY, up 14.2% YoY - 2027: 16,986 million CNY, up 12.0% YoY [4] - Net Profit Forecast: - 2024: 1,202 million CNY, down 23.2% YoY - 2025: 1,364 million CNY, up 13.4% YoY - 2026: 1,572 million CNY, up 15.2% YoY - 2027: 1,773 million CNY, up 12.8% YoY [4] - Earnings Per Share (EPS): - 2024: 2.96 CNY - 2025: 3.35 CNY - 2026: 3.86 CNY - 2027: 4.36 CNY [4] - Valuation Ratios: - Price-to-Earnings (P/E) ratio for 2025 is projected at 20x, with a target price of 67 CNY per share [8]. Market Performance - The company has shown resilience in sales volume, with raw material sales increasing by 3.5% YoY and formulation sales by 1.77% YoY in 2024 [8]. - The report notes a significant rebound in prices for certain products, indicating a potential recovery in the pesticide market [8].