hailir(SH:603639) EBSCN·2024-05-07 07:32Investment Rating - The report maintains a rating of "Accumulate" for the company [3]. Core Views - The company is advancing its pesticide production capacity steadily and deepening its integration strategy for formulations, active ingredients, and intermediates. New production projects for various pesticides have entered trial production phases, which helps mitigate the cyclical volatility risks associated with active ingredients [2]. - Despite a downturn in the pesticide industry leading to declining product prices, the company still shows good development potential with ongoing projects. The profit forecasts for 2024-2026 have been adjusted downward due to industry conditions, with expected net profits of 450 million, 555 million, and 726 million yuan respectively [2]. Summary by Relevant Sections Financial Performance - In 2023, the company experienced a slight increase in performance year-on-year despite a decrease in revenue due to falling prices. The sales volume of pesticides increased, but the overall revenue slightly declined [3]. - For 2023, the company reported revenues of 2.091 billion yuan from pesticide formulations, 2.201 billion yuan from active ingredients, and 48 million yuan from fertilizers, reflecting year-on-year declines of 6.75%, 0.24%, and 8.06% respectively [3]. - The gross profit margins for pesticide formulations, active ingredients, and intermediates were 20.47%, 40.41%, and 35.21% respectively in 2023, with changes of -3.34, +11.11, and +1.90 percentage points year-on-year [3]. Profit Forecasts and Valuation - The company’s revenue for 2024 is projected to be 4.618 billion yuan, with a growth rate of 5.00%. The net profit for 2024 is expected to be 450 million yuan, reflecting a decrease of 4.96% compared to 2023 [4]. - The report provides a detailed forecast for the company's financials, including revenue and net profit projections for 2024-2026, indicating a gradual recovery in the following years [4]. Market Data - The current stock price is 15.58 yuan, with a total market capitalization of 34 billion yuan [5]. - The company’s stock has shown a relative performance of -3.31% over the past month and +21.81% over the past three months [5].