Yangnong Chemical(SH:600486) Changjiang Securities·2025-05-07 14:16Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 3.24 billion yuan in Q1 2025, representing a year-on-year increase of 2.0%. The net profit attributable to shareholders was 430 million yuan, up 1.4% year-on-year, and the net profit after deducting non-recurring gains and losses was also 430 million yuan, reflecting a 0.8% increase year-on-year [2][6] Summary by Sections Company Overview - The company is a leading player in the domestic agrochemical sector and a core supplier of pyrethroid raw materials globally. It is recognized as a national key high-tech enterprise [12] Financial Performance - In Q1 2025, the company achieved a raw material and formulation sales volume of 29,000 tons and 15,000 tons, respectively, marking a year-on-year increase of 14.8% and 2.8%. The gross margin and net margin for Q1 2025 were 24.6% and 13.4%, respectively, showing a year-on-year increase of 0.3 percentage points and a slight decrease of 0.1 percentage points [12] Market Dynamics - The company is experiencing a recovery in product prices, with the average price of raw materials and formulations in Q1 2025 showing a year-on-year decline of 8.8% and 1.6%, respectively. However, there are signs of price stabilization and potential rebound due to inventory replenishment needs from end-users [12] Future Outlook - The company expects to increase its sales to Syngenta from 2.41 billion yuan in 2024 to 3.70 billion yuan in 2025, with further growth anticipated in subsequent years. The projected net profits for 2025, 2026, and 2027 are 1.31 billion yuan, 1.47 billion yuan, and 1.69 billion yuan, respectively [12][24]