Yangnong Chemical(SH:600486) EBSCN·2025-10-29 11:16Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Views - The company achieved a revenue of 9.156 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 14.23%. The net profit attributable to shareholders reached 1.055 billion yuan, up 2.88% year-on-year [1]. - The agricultural chemical industry is experiencing a recovery, with the company expected to benefit from this trend due to its strong market position and ongoing projects [3]. - The company's original drug sales have shown steady growth, while the formulation business has seen a slight decline in sales [2]. Summary by Sections Financial Performance - In Q3 2025, the company reported a revenue of 2.923 billion yuan, a year-on-year increase of 26.15%, but a quarter-on-quarter decrease of 2.34%. The net profit for the quarter was 250 million yuan, down 5.01% year-on-year and down 32.72% quarter-on-quarter [1]. - For the first three quarters of 2025, the original drug business generated revenue of 5.41 billion yuan, up 12.2% year-on-year, with a sales volume of 86,300 tons, an increase of 13.5% year-on-year. The average selling price decreased slightly by 1.1% to 62,700 yuan per ton [2]. Industry Outlook - The agricultural chemical industry is gradually recovering, with a 2.8% increase in the domestic pesticide raw material price index since the beginning of 2025. The company, as a leading player in the industry, is well-positioned to benefit from this recovery [3]. Project Development - The company's Liaoning Youchuang Phase I project has exceeded 90% investment progress and is expected to be fully operational soon, providing new growth opportunities for the company [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been slightly adjusted downwards due to a minor decline in gross margin. The expected net profits for 2025, 2026, and 2027 are 1.260 billion yuan, 1.563 billion yuan, and 1.809 billion yuan, respectively [3].