LMGF(SZ:002734) Guoxin Securities·2025-08-15 01:42Investment Rating - The report maintains an "Outperform the Market" rating for the company [6][22]. Core Insights - The company has experienced significant growth in its performance for the first half of 2025, with a revenue of 2.452 billion yuan, representing a year-on-year increase of 6.69%, and a net profit attributable to shareholders of 269 million yuan, reflecting a substantial year-on-year growth of 747.13% [1][9]. - The growth is attributed to rising sales and prices of key products, effective cost control, and increased investment income from affiliated companies [1][9]. - The company has successfully registered several key products in the Brazilian market, which is expected to enhance overseas sales in the coming years [2][17]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 2.452 billion yuan, a 6.69% increase year-on-year, and a net profit of 269 million yuan, a 747.13% increase year-on-year [1][9]. - The second quarter alone saw a net profit of 161 million yuan, a quarter-on-quarter increase of 49.07% [1][9]. - The pesticide business generated 2.2 billion yuan in revenue, a 4.63% increase year-on-year, with a gross margin of 26.45%, up 8.71 percentage points [10]. Product Performance - The revenue from fungicides increased by 12.36% year-on-year, while insecticides saw a revenue increase of 5.19% year-on-year [10]. - The market prices for key products such as甲维盐 and 阿维菌素 have risen significantly, indicating a positive trend in profitability [2][18]. - The company has a strong market presence in Brazil, with successful registrations of several key products, which is expected to drive future sales growth [2][17]. New Business Developments - The company has accelerated its new business layout, including the acquisition of a 51% stake in 德彦智创, which focuses on AI-driven pesticide development [3][21]. - Strategic partnerships with various technology companies are being established to develop innovative agricultural products, enhancing the company's growth potential [3][21]. Financial Projections - The company forecasts net profits of 529 million yuan, 588 million yuan, and 648 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.26 yuan, 1.40 yuan, and 1.54 yuan [4][22]. - The current stock price corresponds to a PE ratio of 17.2, 15.5, and 14.1 for the years 2025, 2026, and 2027 respectively [4][22].