Investment Rating - The report maintains an "Accumulate" rating for the company [6] Core Views - The company achieved a revenue of 1.119 billion yuan in the first half of 2025, representing a year-on-year growth of 7.33%, and a net profit attributable to shareholders of 231 million yuan, up 6.05% year-on-year [1] - The cash dividend payout ratio exceeded 80% in the first half of 2025, with a proposed cash dividend of 4.00 yuan per 10 shares, totaling approximately 187 million yuan [2] - The company continues to enhance its pesticide registration certificate layout, holding a total of 330 pesticide product registration certificates and 132 fertilizer registration certificates as of June 30, 2025 [3] Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 734 million yuan, a year-on-year increase of 8.47% and a quarter-on-quarter increase of 90.44% [1] - The pesticide business generated 781 million yuan in revenue in the first half of 2025, with a gross margin increase of 1.12 percentage points year-on-year due to higher sales of high-margin products and lower raw material prices [2] Cost and Expenses - Sales, management, and R&D expenses increased by 10.76%, 2.42%, and 42.84% respectively in the first half of 2025, while financial expenses decreased by 2.48% [2] Capacity and Production - The company has a current capacity of 14,500 tons/year for pesticide active ingredients, 88,900 tons/year for pesticide formulations, and 16,000 tons/year for water-soluble fertilizers, with additional projects expected to be operational by the end of 2027 [3] Profit Forecast and Valuation - The company forecasts net profits attributable to shareholders of 428 million yuan, 526 million yuan, and 634 million yuan for 2025, 2026, and 2027 respectively, maintaining the profit estimates for 2025-2027 [3]