Yangnong Chemical(SH:600486) KAIYUAN SECURITIES·2025-04-29 08:59Investment Rating - The investment rating for Yangnong Chemical (600486.SH) is "Buy" (maintained) [1] Core Views - The company has shown significant growth in production and sales, leading to improved profitability, highlighting its status as a leading player in the agrochemical sector [4] - The first quarter of 2025 saw revenue of 3.241 billion yuan, a year-on-year increase of 2.04% and a quarter-on-quarter increase of 33.96%, with a net profit attributable to shareholders of 435 million yuan, up 1.35% year-on-year and 146.77% quarter-on-quarter [4] - The report maintains profit forecasts, expecting net profits for 2025-2027 to be 1.410 billion, 1.600 billion, and 1.823 billion yuan respectively, with corresponding EPS of 3.47, 3.93, and 4.48 yuan per share [4][6] Summary by Sections Financial Performance - In Q1 2025, the production of active ingredients and formulations reached 29,500 tons and 13,000 tons respectively, with year-on-year increases of 19.4% and 13.0% [4] - Sales volumes for the same period were 28,700 tons and 15,400 tons, reflecting year-on-year growth of 14.8% and 2.8% [4] - Revenue from active ingredients and formulations was 1.806 billion yuan and 871 million yuan, with year-on-year growth of 4.8% and 1.1% [4] Profitability - The gross margin and net margin for Q1 2025 were 24.64% and 13.43%, respectively, showing improvements compared to the 2024 annual report [4] - The report indicates that the agrochemical industry is still under pressure, but the company has managed to achieve profitability during the initial production phase of its projects [4] Market Outlook - The report anticipates a recovery in demand for certain products as inventory adjustments in overseas markets take effect, and industry consolidation is expected to enhance pricing power in the medium term [4] - The company is well-positioned to benefit from these trends due to its integrated operations and efficient management [4]