Sichuan Guoguang Agrochemical (SZ:002749) Minsheng Securities·2024-02-13 16:00Investment Rating - The report gives a "Recommended" rating for the company, with a target price of 14.14 yuan [42]. Core Viewpoints - The company is a leading player in the domestic plant growth regulator market, with a complete industrial chain for research, production, and sales of plant growth regulators [40][54]. - The market for plant growth regulators in China is expected to continue growing, with a projected market size of 113 billion yuan by 2026 [24][40]. - The company is focusing on integrated crop solutions to address user pain points, which is expected to significantly increase sales in the field of large-scale crop production [40]. Summary by Sections Company Overview - The company specializes in plant growth regulators, water-soluble fertilizers, and fungicides, with products widely used in agriculture and horticulture [1][54]. - The company has a strong product lineup, including multiple types of plant growth regulators and fertilizers, and aims to provide integrated solutions for crop management [1][12]. Financial Performance - The company experienced rapid revenue growth from 737 million yuan in 2017 to 1.648 billion yuan in 2022, with a CAGR of 17.46% [6][40]. - In 2022, the company reported a revenue of 1.648 billion yuan, a year-on-year increase of 21.34%, but a net profit decline of 44.90% due to rising raw material costs [6][40]. - In 2023, the company is expected to see a turnaround, with a projected revenue of 1.348 billion yuan in the first three quarters, up 8.67% year-on-year, and a net profit of 2.23 million yuan, up 36.12% [6][40]. Market Potential - The global market for plant growth regulators reached 2.9 billion USD in 2022, with a projected CAGR of 7.4% from 2022 to 2028 [20]. - The domestic market for plant growth regulators is expected to grow significantly, driven by stricter regulations on pesticides and the trend towards more efficient agricultural practices [22][40]. Competitive Landscape - The industry is characterized by low concentration, with many small players, providing opportunities for leading companies to increase market share [26][40]. - The company has a significant number of product registrations, with 291 pesticide product registration certificates, including 118 for plant growth regulators, making it a leader in the sector [28][40]. Research and Development - The company has been increasing its R&D investment, with a focus on optimizing product formulations and expanding its product registration capabilities [12][40]. - As of the end of 2022, the company had 237 R&D personnel, reflecting its commitment to innovation and product development [12][40].