Yangnong Chemical(SH:600486) EBSCN·2025-08-23 07:33Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a revenue of 6.234 billion yuan for the first half of 2025, representing a year-on-year growth of 9.38%, and a net profit attributable to shareholders of 806 million yuan, up 5.60% year-on-year [1] - The company's raw material business saw a revenue increase of 10.0% year-on-year, with production and sales volumes rising by 17.1% and 13.4% respectively, while the formulation business experienced a revenue decline of 2.8% [2] - The company is benefiting from the recovery in the pesticide industry, with a significant increase in revenue from its Liaoning Youchuang project, which has reached 5.52 billion yuan in revenue for the first half of 2025, a 346% increase from the previous half [3] - The report forecasts net profits for 2025, 2026, and 2027 to be 1.378 billion yuan, 1.625 billion yuan, and 1.910 billion yuan respectively, maintaining the profit estimates for these years [3] Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 62.34 billion yuan, with a net profit of 8.06 billion yuan, and a non-recurring net profit of 7.96 billion yuan [1] - Q2 2025 saw a revenue of 29.93 billion yuan, an 18.63% increase year-on-year, but a 7.64% decrease quarter-on-quarter [1] Business Segments - The raw material segment's revenue was 36.55 billion yuan, with production at 57,800 tons and sales at 56,700 tons [2] - The formulation segment's revenue was 11.7 billion yuan, with production at 25,500 tons and sales at 28,100 tons [2] Industry Outlook - The pesticide industry is experiencing a recovery, with a 3.4% increase in the domestic pesticide raw material price index since the beginning of 2025 [3] - The company is well-positioned to benefit from this recovery due to its comprehensive supply chain and advanced production processes [3] Profit Forecast and Valuation - The report maintains profit forecasts for 2025-2027, with expected net profits of 1.378 billion yuan, 1.625 billion yuan, and 1.910 billion yuan respectively [3] - The current stock price is 69.88 yuan, with a market capitalization of 28.329 billion yuan [6]