Yangnong Chemical(SH:600486) Dongxing Securities·2024-05-06 10:00Investment Rating - The report maintains a "Strong Buy" rating for Yangnong Chemical [2] Core Views - Yangnong Chemical's Q1 2024 performance showed a revenue of 3.176 billion yuan, down 29.43% year-on-year, and a net profit of 429 million yuan, down 43.11% year-on-year due to a sluggish market and declining prices and sales of pesticide products [1][2] - The pesticide industry is currently at a cyclical low, with prices at historical lows, but there is an expectation for recovery as overseas inventory depletion nears completion and demand gradually increases [1] - The company is progressing with new project capacity construction, which is expected to contribute to performance growth in the future [1] Financial Performance Summary - Revenue for 2024 is projected at 12.874 billion yuan, with a growth rate of 12.16% in 2025 and 10.28% in 2026 [3] - Net profit forecasts for 2024, 2025, and 2026 are 1.741 billion yuan, 2.022 billion yuan, and 2.306 billion yuan respectively, with corresponding growth rates of 11.25%, 16.10%, and 14.08% [3] - The company's comprehensive gross margin decreased by 3.15 percentage points to 24.34% due to falling prices of raw pesticide products [1] Project Development - Key ongoing projects include the Youjia project and the Liaoning Youchuang project, with the former's Phase II completed and rapidly reaching production capacity, while the latter is expected to complete its first phase within 2024 [1]