Investment Rating - The report maintains a "Strong Buy" rating for the company [2][5]. Core Insights - The company reported a revenue of 15.024 billion yuan in the first half of 2025, representing a year-over-year increase of 0.76%. The net profit attributable to shareholders improved to a loss of 80 million yuan, showing a reduction in losses compared to the previous year [3]. - The agricultural pesticide market is recovering, but pricing remains under pressure due to oversupply in raw material production. The company has initiated a "Progress Plan" aimed at improving profits and cash flow from 2024 to 2026, focusing on financial management, operational restructuring, and value innovation in niche markets [4]. - The company is enhancing its differentiated product line, which is expected to drive long-term growth. New products are being registered and launched globally as part of this strategy [4]. Financial Performance Summary - The company achieved a sales figure of 2.091 billion USD in the first half of 2025, with a year-over-year sales volume increase of 4%, offsetting a 3% decline in prices. Adjusted gross profit was 620 million USD, up 11% year-over-year, with a gross margin increase to 29.7% from 26.5% [3]. - The adjusted EBITDA for the first half of 2025 was 310 million USD, reflecting a 23% year-over-year increase, with an EBITDA margin of 14.8% [3]. - The financial forecast for net profit from 2025 to 2027 is projected at 79 million, 103 million, and 176 million yuan, respectively, with corresponding EPS of 0.03, 0.04, and 0.08 yuan [5][6]. Company Overview - The company, formerly known as Shalon, is a significant player in the domestic pesticide raw material production sector and became a global leader in non-patent pesticides after acquiring ADAMA Solutions in 2017 [7]. - The current market capitalization is approximately 16.262 billion yuan, with a circulating market value of 15.196 billion yuan [7].