Yangnong Chemical(SH:600486) CMS·2025-04-28 13:03Investment Rating - The report maintains an "Accumulate" investment rating for the company [3] Core Views - The company's Q1 performance met expectations, with revenue of 3.241 billion yuan, a year-on-year increase of 2.04%, and a net profit attributable to shareholders of 435 million yuan, up 1.35% year-on-year [1] - Despite a decline in product sales prices, the company demonstrated strong cost control, and the new Liaoning project is expected to contribute positively to future performance [6] - The agricultural chemicals industry is currently at the bottom of its cycle, but the company is expected to show resilience and potential for profit growth as market conditions improve [6] Financial Data and Valuation - Total revenue projections for the company are as follows: 11.478 billion yuan in 2023, 10.435 billion yuan in 2024, and expected growth to 11.732 billion yuan in 2025, representing a year-on-year growth of 12% [2][9] - The company's net profit is projected to be 1.565 billion yuan in 2023, decreasing to 1.202 billion yuan in 2024, and then increasing to 1.349 billion yuan in 2025, with a corresponding EPS of 3.85 yuan, 2.96 yuan, and 3.32 yuan respectively [2][10] - The current PE ratio is 13.3 for 2023, increasing to 17.3 in 2024, and then decreasing to 15.4 in 2025, indicating a potential undervaluation in the coming years [10] Sales Performance - In Q1 2025, the company's raw material revenue reached 1.81 billion yuan, a year-on-year increase of 4.8%, with sales volume up 14.8% to 28,700 tons, despite a sales price drop of 8.8% [6] - The company's comprehensive gross margin improved by 0.3 percentage points to 24.6% in Q1 2025, reflecting effective cost management [6] Project Development - The company is advancing its innovative pesticide development, with significant progress on the Liaoning project, which is expected to enhance production capabilities and product offerings [6] - The company aims to complete the first phase of the Liaoning project ahead of schedule, with multiple products already yielding qualified outputs [6]