Cynda(SH:603086)2025-05-21 00:23Investment Rating - The report does not explicitly state the investment rating for Shandong Cynda Chemical Core Insights - In Q1 2025, the company achieved a non-recurring net profit of 20 million yuan, a year-on-year increase of 224%. The operating income reached 543 million yuan, up 10.78% year-on-year, with total profit at 24 million yuan, a 296.51% increase. The net profit attributable to the parent company was 22 million yuan, reflecting a 257.63% increase. The growth was driven by increased sales volume and prices of major products [2][3]. - The market for clethodim remains tight, with prices continuing to rise. The mainstream transaction reference price for clethodim was 130,000 yuan per ton, an increase of 10,000 yuan per ton (up 8.33%) from the previous week. Low market inventory and strong demand are contributing to this price increase [4]. - The company has made significant progress in original drug R&D, establishing a product matrix centered on quinclorac, pyrazoxyfen, and Feproxydim. The first product, quinclorac, has been widely applied, while the second product, pyrazoxyfen, is set to launch in 2025. The third product, Feproxydim, is currently under review [5]. Summary by Sections Financial Performance - In Q1 2025, the company reported: - Operating income: 543 million yuan, up 10.78% year-on-year - Total profit: 24 million yuan, up 296.51% year-on-year - Net profit attributable to parent company: 22 million yuan, up 257.63% year-on-year - Non-recurring net profit: 20 million yuan, up 224% year-on-year - Gross profit margin: 17.78%, up 4.97 percentage points year-on-year - Net profit margin: 3.92%, up 6.73 percentage points year-on-year [2][3]. Market Dynamics - The supply-demand situation for clethodim remains tight, with strong demand and low inventory levels. Most enterprises can schedule orders until July. The price of clethodim has increased significantly due to this tight market condition [4]. R&D Developments - The company has established a core matrix of innovative products, with successful registrations and applications of its herbicides. The first product, quinclorac, has been applied in over 2 million mu of fields, while the second product, pyrazoxyfen, is expected to launch in 2025. The third product is under review, and additional herbicides are set to begin registration processes in 2025 [5].