Yangnong Chemical(SH:600486) Guotai Junan Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for Yangnong Chemical (600486) with a target price of 79.91, up from the previous forecast of 78.57 [1][2]. Core Views - The company's performance in 2023 met market expectations, demonstrating strong resilience in profitability despite a rapid decline in the pesticide market [1]. - The report updates earnings forecasts for 2024-2026, projecting EPS of 4.21, 4.63, and 5.40 respectively, reflecting a stable outlook based on low pesticide prices [1][2]. Financial Summary - In 2023, Yangnong Chemical achieved an operating revenue of 11.478 billion, a year-on-year decrease of 27.41%, and a net profit attributable to shareholders of 1.565 billion, down 12.77% [1][2]. - The company's gross margin was reported at 25.60%, with a net profit margin of 13.65% [1]. - The total assets amounted to 14.793 billion, with total liabilities of 5.761 billion, resulting in a shareholder equity of 8.539 billion [2]. Earnings Forecast - The report projects a revenue increase to 13.937 billion in 2024, with a net profit forecast of 1.709 billion [2]. - The EBIT is expected to rise to 2.017 billion in 2024, reflecting an 11% increase from the previous year [2]. Market Position - Despite a downturn in raw material prices, the company has expanded its market share, indicating resilience in its operational strategy [1]. - The report highlights the potential for price recovery in certain pesticide categories, supported by the company's competitive advantages [1].