Yangnong Chemical(SH:600486) Changjiang Securities·2025-10-30 09:45Investment Rating - The investment rating for the company is "Buy" and it is maintained [10]. Core Views - The company reported a revenue of 9.16 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 14.2%. The net profit attributable to shareholders was 1.06 billion yuan, up 2.9% year-on-year, while the net profit excluding non-recurring items was 1.04 billion yuan, an increase of 5.8% year-on-year. In Q3 alone, the revenue reached 2.92 billion yuan, a significant year-on-year increase of 26.1%, although the net profit for the quarter decreased by 5.0% to 250 million yuan [2][7]. Summary by Sections Company Overview - The company is a key high-tech enterprise in China and a leading player in the domestic agrochemical sector, being a core supplier of pyrethroid raw materials globally. The company is advancing its Huludao project with a focus on early production and profitability [7][10]. Financial Performance - For Q3 2025, the company achieved a gross margin of 19.6% and a net margin of 8.5%, reflecting a slight year-on-year decline of 3.9 percentage points and 2.8 percentage points, respectively. The sales volume of raw materials and formulations was 30,000 tons and 5,000 tons, showing a year-on-year increase of 13.5% and a decrease of 17.6%, respectively [7][10]. Market Dynamics - The prices of the company's raw materials have shown fluctuations, with a year-on-year increase of 3.1% for raw materials and 0.8% for formulations in Q3 2025. The company anticipates continued sales growth as production capacity from its northern base is released [10][12]. Future Outlook - The company expects to maintain its growth trajectory, with projected net profits of 1.30 billion yuan, 1.44 billion yuan, and 1.59 billion yuan for 2025, 2026, and 2027, respectively. The fourth quarter is expected to benefit from the North American pesticide demand peak [10][12].