SAL(SH:603970) AVIC Securities·2025-12-09 00:44Investment Rating - The investment rating for Zhongnong Lihua is "Buy" with an expectation of over 10% return relative to the CSI 300 index in the next six months [3][16]. Core Views - The company reported a revenue of 8.95 billion yuan for the first three quarters of 2025, a year-on-year increase of 5.11%, while the net profit attributable to shareholders decreased by 13.63% to 151 million yuan [1]. - The agricultural chemical price cycle has been in a downtrend for over four years, but positive factors are accumulating, including completed destocking, rising costs due to environmental investments, and new regulations aimed at optimizing industry competition [2]. - The company has a strong commitment to shareholder returns, with an average dividend payout ratio of 46.99% since its listing, expected to increase to 59.48% in 2024, and a current dividend yield of 3.44% [2]. Financial Summary - For 2025-2027, the projected net profit attributable to shareholders is expected to be 181 million yuan, 223 million yuan, and 267 million yuan respectively [3]. - The company has a total share capital of 268.80 million shares and a total market value of 35.24 billion yuan [4]. - The price-to-earnings ratio (TTM) is 19.63, and the price-to-book ratio (PB) is 2.28, with a return on equity (ROE) of 9.77% [4].