ADAMA(SZ:000553) Tianfeng Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is maintained at "Hold" [2][3]. Core Views - The company's performance in 2023 is under pressure due to high inventory levels in the pesticide channel, leading to a decline in revenue and profit [6][8]. - The company is a leading player in the global non-patented crop protection market, with projected net profits for 2024-2026 at 200 million, 350 million, and 550 million yuan respectively [2][3]. - The report highlights a significant drop in sales revenue, with a 16% year-on-year decrease to 4.661 billion USD in 2023, driven by an 8% decline in sales prices and a 7% drop in sales volume [6][7]. Financial Performance Summary - In 2023, the company reported total revenue of 327.79 billion yuan, a decrease of 12.31% year-on-year, with a net profit attributable to shareholders of -16.06 billion yuan [5][9]. - The gross profit margin for 2023 was 20.7%, down 4.4 percentage points year-on-year, with total expenses increasing by 3.3% to 69.31 billion yuan [8][9]. - The company's earnings per share (EPS) for 2023 was -0.69 yuan, with a projected EPS of 0.09, 0.15, and 0.24 yuan for 2024, 2025, and 2026 respectively [9][20]. Sales Performance by Product and Region - Sales by product in 2023 showed declines across categories: herbicides down 20.4%, fungicides down 8.0%, insecticides down 11.4%, and fine chemicals down 27.6% [6][7]. - Regionally, sales in Europe, Africa, and the Middle East (EAME) decreased by 8%, North America by 20%, Latin America by 19%, and Asia-Pacific by 18%, with domestic sales in China down 25% [7][8]. Strategic Initiatives - The company has initiated a "Reverse Plan" to improve market positioning, optimize product mix, and reduce production costs and operating expenses in response to the challenging market environment [8][9].