Yangnong Chemical(SH:600486) Guoxin Securities·2025-08-22 02:19Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][22] Core Views - The agricultural chemical industry is experiencing a recovery, with the company achieving steady growth in the first half of 2025, reporting revenue of 6.234 billion yuan, a year-on-year increase of 9.38%, and a net profit of 806 million yuan, up 5.60% year-on-year [1][9] - The company's growth is primarily driven by an increase in sales volume, which has offset the negative impact of low product prices [1][9] - The company is expected to maintain its competitive advantages in technology, cost, and market share due to its extensive "research-production-sales" experience as the global agricultural chemical supply-demand balance normalizes [2][17] Summary by Sections Financial Performance - In the first half of 2025, the company's raw material business generated revenue of 3.655 billion yuan, a 9.98% increase year-on-year, with sales volume reaching 56,700 tons, up 13.43% year-on-year [1][9] - The formulation business reported revenue of 1.171 billion yuan, a decrease of 2.77% year-on-year, with sales volume of 28,100 tons, a slight increase of 0.12% year-on-year [1][9] - Domestic revenue reached 3.579 billion yuan, a 28.53% increase year-on-year, while international revenue was 2.655 billion yuan, down 8.91% year-on-year [1][9] Project Development - The Liaoning Youchuang Phase I project is nearing completion, with total investment reaching 3.178 billion yuan, accounting for 91.38% of the budget [3][19] - The project includes key pesticide products and is expected to significantly contribute to the company's growth starting in 2026 [3][19] Future Earnings Forecast - The company maintains its profit forecast for 2025 and slightly raises the forecasts for 2026 and 2027, expecting net profits of 1.355 billion yuan, 1.717 billion yuan, and 1.942 billion yuan respectively [4][22] - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 3.33 yuan, 4.22 yuan, and 4.78 yuan respectively, with corresponding price-to-earnings (PE) ratios of 20.7, 16.3, and 14.4 [4][22]