SuKen Agriculture(SH:601952) Zhongyuan Securities·2025-09-12 12:11Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a potential increase of 5% to 15% relative to the CSI 300 index over the next six months [22]. Core Insights - The company's performance is under pressure, with a year-on-year decline in revenue and net profit, but the seed business shows growth against the trend [7]. - The company achieved a revenue of 4.588 billion yuan in the first half of 2025, a decrease of 9.26% year-on-year, and a net profit of 213 million yuan, down 27.71% year-on-year [7]. - The agricultural input business faced challenges, while the seed segment experienced a 4.31% increase in revenue [7]. - The company is expanding its business layout through subsidiaries and maintaining stable summer grain production [7]. Financial Performance Summary - In the first half of 2025, the company reported a net cash flow from operating activities of 722 million yuan, a significant increase of 412.77% year-on-year [7]. - The gross profit margin for the first half of 2025 was 12.03%, down 1.08 percentage points year-on-year, while the net profit margin was 4.87%, down 1.18 percentage points year-on-year [7]. - The company's asset-liability ratio was 50.68%, a decrease of 1.02 percentage points year-on-year, indicating ongoing financial structure optimization [7]. Revenue and Profit Forecast - The company is expected to achieve net profits of 755 million yuan, 881 million yuan, and 939 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.55 yuan, 0.64 yuan, and 0.68 yuan [9][10]. - The current price-to-earnings ratio (PE) is projected to be 17.61 for 2025, decreasing to 14.16 by 2027, suggesting reasonable valuation within the industry [9][10].