Yangnong Chemical(SH:600486) CMS·2025-10-27 14:06Investment Rating - The report maintains an "Accumulate" investment rating for the company [4][7]. Core Views - The company's performance in the first three quarters of 2025 showed a slight year-on-year increase, with revenue reaching 9.156 billion yuan, up 14.23%, and net profit attributable to shareholders at 1.055 billion yuan, up 2.88% [1]. - The agricultural chemical industry is expected to reach a bottom and recover, despite ongoing challenges such as geopolitical issues and market competition [7]. - The company has successfully increased its raw material sales and is focusing on cost reduction and efficiency improvements to mitigate adverse impacts [7]. Financial Data and Valuation - Revenue projections for the company from 2023 to 2027 are as follows: 11.478 billion yuan in 2023, 10.435 billion yuan in 2024, 11.925 billion yuan in 2025, 13.567 billion yuan in 2026, and 15.331 billion yuan in 2027, with a projected growth rate of 14% in 2025 [3][14]. - The expected net profit for 2025 is 1.232 billion yuan, with earnings per share (EPS) projected at 3.04 yuan [3][15]. - The current price-to-earnings (PE) ratio is estimated to be 21 times for 2025, decreasing to 15 times by 2027 [7][8]. Company Performance - The company's raw material revenue for the first three quarters was 5.41 billion yuan, a 12.2% increase year-on-year, while formulation revenue was 1.32 billion yuan, a 4.6% decrease [7]. - The average selling price of raw materials decreased by 1.12%, while the average selling price of formulations fell by 1.61% [7]. - The company is focusing on technological innovation and has made significant progress in new project construction, particularly in the production of pyrethroid products [7].