Lier Chemical (002258)2025-04-30 08:41Investment Rating - The report maintains a "Strong Buy" rating for Lier Chemical [2][4]. Core Views - Lier Chemical reported a significant year-on-year revenue growth of 49.99% in Q1 2025, reaching 2.086 billion yuan, and a net profit increase of 219.90%, amounting to 153 million yuan [3]. - The growth in performance is attributed to the rise in sales and prices of certain products, although the core product, glyphosate, remains at a low price level, awaiting recovery [3]. - The agricultural pesticide industry is currently at the bottom of its cycle, with increased competition and an oversupply situation due to new production capacities and inventory buildup [3]. - Positive factors for the industry's healthy development are gradually increasing, with some product prices rising, but competition remains fierce for certain pesticide products [3]. - The report anticipates that after a period of capacity optimization and consolidation, companies without competitive advantages will exit the market, leading to increased industry concentration [3]. - Lier Chemical is well-positioned in the glyphosate market, with a broad demand space and strategic partnerships with multinational companies for the promotion of refined glyphosate products [4]. Financial Forecasts - The net profit forecasts for Lier Chemical from 2025 to 2027 are 429 million yuan, 591 million yuan, and 766 million yuan, respectively, with corresponding EPS of 0.54 yuan, 0.74 yuan, and 0.96 yuan [4][6]. - The current P/E ratios for the years 2025, 2026, and 2027 are projected to be 19, 14, and 11 times, respectively [4].