CHANGQING(SZ:002391) 光大证券研究·2025-08-18 23:05Core Viewpoint - The company reported a significant improvement in its financial performance for the first half of 2025, driven by a recovery in the pesticide industry and effective cost management [4][5]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.083 billion yuan, a year-on-year increase of 7.3% [4]. - The net profit attributable to shareholders reached 42 million yuan, marking a substantial year-on-year increase of 117.8% [4]. - For the second quarter of 2025, the company reported operating revenue of 1.163 billion yuan, up 7.5% year-on-year and 26.4% quarter-on-quarter [4]. - The net profit attributable to shareholders for Q2 2025 was 26 million yuan, reflecting a year-on-year increase of 122.3% and a quarter-on-quarter increase of 53.3% [4]. Market Demand and Product Performance - The pesticide market demand has rebounded, with the company’s herbicides, insecticides, fungicides, and regulators generating revenues of 1.06 billion, 790 million, 170 million, and 80 million yuan respectively, with year-on-year changes of +14.8%, +0.5%, -3.3%, and +40.1% [5]. - The gross profit margins for these products were 11.1%, 15.7%, 13.9%, and 26.9%, with year-on-year changes of -4.1, +8.6, -0.1, and +17.3 percentage points respectively [5]. - The company’s export sales reached 1.087 billion yuan, a year-on-year increase of 19.61%, supported by international market demand recovery and proactive customer engagement [5]. Production Capacity and Market Coverage - As of the end of 2024, the company had a raw material production capacity of 43,910 tons per year and a formulation capacity of 20,000 tons per year, with an additional 5,500 tons per year of raw material capacity under trial or construction [6]. - The company has established a comprehensive sales network across over 30 provinces in China and holds registrations for over 40 types of raw materials and 150 types of formulations, ensuring adaptability to various agricultural needs [6]. - The company has self-operated import and export rights and has formed stable partnerships with several multinational companies, enhancing its competitive edge in international markets [6].