hailir(SH:603639) Orient Securities·2025-09-02 11:14Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.90 CNY based on a projected EPS of 0.95, 1.35, and 1.79 CNY for 2025-2027 [4][7]. Core Views - The company experienced a year-on-year revenue growth of 6.84% in Q2, driven by a 9.20% increase in pesticide sales, despite a 1.26% decline in average product prices [10]. - The company's gross profit margin for Q2 was 23.79%, remaining stable year-on-year, while net profit increased by 35.24% to 0.97 billion CNY due to reduced asset impairment losses [10]. - The Hengning base is expected to continue reducing losses as its operational efficiency improves, potentially contributing positively in the future [10]. Financial Summary - Revenue for 2023 is projected at 4,398 million CNY, with a decline of 3.0% year-on-year, followed by a forecasted increase of 23.6% in 2025 [6]. - Operating profit is expected to drop to 242 million CNY in 2024, a decrease of 57.5%, before recovering to 378 million CNY in 2025 [6]. - The net profit attributable to the parent company is forecasted to be 473 million CNY in 2023, with a significant drop of 61.7% in 2024, followed by a recovery to 324 million CNY in 2025 [6]. - The company’s gross margin is expected to decline to 23.9% in 2024, before gradually improving to 25.7% by 2027 [6].