LMGF(SZ:002734) Guoxin Securities·2025-05-26 00:45Investment Rating - The investment rating for the company is "Outperform the Market" [5][7]. Core Views - The company's performance in 2024 was impacted by a global agricultural chemical destocking cycle, but a significant improvement is expected in Q1 2025 due to price increases in several main products [2][30]. - The company reported a revenue of 4.237 billion yuan in 2024, a slight increase of 0.32% year-on-year, while the net profit attributable to shareholders was 81 million yuan, up 31.11% year-on-year [2][6]. - The company is experiencing a recovery in product prices, particularly in key products like Mancozeb and Avermectin, which have seen substantial price increases since March 2024 [3][34]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 1.211 billion yuan, a year-on-year increase of 22.28%, and a net profit of 108 million yuan, marking a turnaround from a loss in the previous year [30]. - The company’s revenue and net profit forecasts for 2025-2027 are 4.958 billion yuan, 5.255 billion yuan, and 5.513 billion yuan, with net profits of 402 million yuan, 478 million yuan, and 522 million yuan respectively [5][50]. Product Pricing and Market Trends - Key products such as Mancozeb and Avermectin have seen price increases, with Mancozeb's price rising from 23,500 yuan/ton to 25,000 yuan/ton since March 2025 [3][33]. - The price of the company's other products, including Bacillus thuringiensis and the veterinary drug Tylosin, has also increased significantly, indicating a positive trend in product demand [34][37]. New Business Developments - The company has accelerated its new business layout, including the acquisition of a 51% stake in DeYan ZhiChuang, which focuses on AI-driven pesticide development [4][38]. - Strategic partnerships with companies like BASF are expected to enhance the development and commercialization of new pesticides in China [4][38]. Market Position and Competitive Landscape - The company holds a strong market position in the agricultural chemicals sector, with a significant share in the fungicide market and ongoing expansion into international markets, particularly in Brazil [3][33]. - The company is actively working on new product development and technological advancements to maintain its competitive edge in the industry [4][39].