Yangnong Chemical(SH:600486) Changjiang Securities·2025-08-24 23:30Investment Rating - The report maintains a "Buy" rating for the company [11] Core Insights - The company reported a revenue of 6.23 billion RMB for H1 2025, representing a year-on-year increase of 9.4%, with a net profit attributable to shareholders of 810 million RMB, up 5.6% year-on-year [2][7] - In Q2 2025, the company achieved a revenue of 2.99 billion RMB, reflecting an 18.6% year-on-year increase, although it saw a 7.6% decrease compared to the previous quarter [2][7] - The company plans to distribute a cash dividend of 2.40 RMB per 10 shares to all shareholders [2][7] Financial Performance - For H1 2025, the company's net profit after deducting non-recurring items was 800 million RMB, a 7.9% increase year-on-year [2][7] - The gross margin and net margin for Q2 2025 were 22.5% and 12.4%, respectively, showing a year-on-year decrease of 1.5 percentage points and 0.9 percentage points [14] - The company expects net profits for 2025-2027 to be 1.42 billion, 1.59 billion, and 1.82 billion RMB, respectively [14] Market Position and Strategy - The company is a leading player in the domestic agrochemical industry and a core supplier of pyrethroid raw materials globally [14] - The company is advancing its northern base project, focusing on early production and profitability, with the first phase already achieving designed capacity [14] - The company has accelerated the commercialization of new drugs, with 41 patents granted in H1 2025 [14] Product Pricing and Sales - In Q2 2025, the average price of raw materials increased by 3.2% year-on-year, while the average price of formulations decreased by 9.9% year-on-year [14] - The company’s sales volume for raw materials and formulations in Q2 2025 was 28,000 tons and 13,000 tons, respectively, marking a year-on-year increase of 12.0% and a decrease of 2.9% [14] - The company anticipates continued sales growth as production capacity from its northern base is released [14]