Group 1 - The company, Limin Co., Ltd. (002734.SZ), stated on an interactive platform that its produced imidacloprid and other neonicotinoid insecticides have certain effectiveness in mosquito control [1]

Core Viewpoint - The establishment of Nanjing Hongfeng Research and Technology Co., Ltd. by Zhongqi Co., Ltd. indicates a strategic move to expand into various technological and agricultural sectors, with a registered capital of 50 million yuan [1] Group 1 - Nanjing Hongfeng Research and Technology Co., Ltd. has been established with a registered capital of 50 million yuan [1] - The company is wholly owned by Zhongqi Co., Ltd. through indirect holdings [1] - The business scope of the new company includes pesticide production, inspection and testing services, new material technology research and development, resource recycling technology research and development, and fermentation process optimization technology research and development [1]

Core Viewpoint - The implementation of the "one product, one certificate" policy starting January 1, 2026, is expected to significantly impact the pesticide industry, leading to a more concentrated and sustainable market environment, benefiting companies like Limin Co. with technical and certification advantages [1] Industry Impact - The revised pesticide management measures will eliminate disordered competition and decentralized operations, promoting a healthier and more sustainable development path for the industry [1] - The policy is anticipated to force 80% of pesticide production based on borrowing certificates to exit the market, compelling large distributors to shift towards purchasing pesticide formulations from leading companies [1] Company Strategy - Limin Co. plans to leverage its core advantages in original pesticides to adapt to the "one product, one certificate" era by refining its product range and enhancing brand quality [1] - The company aims to establish itself as a new industry benchmark by focusing on improving quality, increasing product variety, and building its brand in a more favorable market environment [1]

"在调研中我们也发现，部分企业为抢夺市场份额已突破商业规则与法律红线的双重底线，有的从没有 资质的生产企业采购原药和中间体，有的采购含有毒有害杂质的母药加工制剂，有的在制剂中违规添加 未登记活性成分，这些行为不仅严重扰乱了市场秩序，还对农业生产造成极大安全隐患。"李钟华说。 破乱象 立标准 强创新 促发展 中化新网讯 中国农药工业协会近日正式启动全行业"正风治卷"三年行动。行动以"破乱象、立标准、强 创新、促发展"为核心目标，发动全行业共同针对隐性添加、非法生产、低价倾销等顽疾展开系统性整 治，以构建高质量发展的行业生态。 农药协会副理事长兼秘书长李钟华介绍说，协会在进行"十五五"规划调研时，不少企业向他们反映，目 前农药行业内隐性添加、非法生产、低价倾销等"内卷"现象十分严重，正规产品在与这些"黑科技"产品 的竞争中常常处于劣势，企业生存极为艰难，对此类"内卷"深恶痛绝。 "统计数据显示，2024年农药行业平均利润率只有5.7%，再创历史新低。在当前环保和安全要求日趋严 格的背景下，如果企业都不挣钱，未来既无法创造利润，也难以永续发展，上马新产品和提升质量都将 成为一纸空谈。所以我们决定以协会的名义先开展' ...

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Viewpoints - The company has a complete industrial chain in the silicon-based new materials sector, covering upstream silicon mining, organic silicon monomer synthesis, and downstream product manufacturing, making it the most comprehensive player in the domestic organic silicon industry [2]. - The company has established a fully integrated development model in crop protection, offering a complete range of herbicides and other agricultural products, and is a leader in global herbicide varieties [3]. - The company is accelerating its globalization efforts, establishing multiple overseas production bases and expanding its marketing network to over 130 countries and regions [3]. Summary by Sections Company Overview - The company has a registered capital of 15 million yuan for its new subsidiary, Zhejiang Xin'an Yushi Silicon Technology Co., Ltd., which focuses on synthetic materials and high-quality synthetic rubber sales [1]. Financial Forecasts - The company’s projected net profits for 2025, 2026, and 2027 are 283 million yuan (down 29.7%), 472 million yuan (down 12.6%), and 684 million yuan, respectively [4]. - Revenue is expected to grow from 14.63 billion yuan in 2023 to 18.59 billion yuan in 2027, with a compound annual growth rate of approximately 6.5% [5]. Profitability and Valuation - The company’s gross margin is projected to improve from 12.5% in 2023 to 13.4% in 2027, indicating a gradual recovery in profitability [12]. - The price-to-earnings (P/E) ratio is expected to decrease from 96 in 2023 to 20 in 2027, reflecting an anticipated recovery in earnings [13]. Market Position - The company is the only domestic player with full coverage of downstream terminal products, offering over 3,000 types of products across various applications [2]. - It has established partnerships with several Fortune 500 companies, enhancing its market presence and credibility [3].

Core Viewpoint - The petrochemical industry is currently facing significant "involution" competition, leading to a widespread dilemma of increasing production without increasing profits, with the industry's operating revenue profit margin declining from 8.03% in 2021 to 4.85% in 2024, and remaining low in the first half of 2025 [1] Group 1: Industry Challenges - The low-quality and homogeneous competition is primarily due to excessive investment and repeated construction, resulting in product homogenization, along with local governments' blind investment promotion exacerbating overcapacity [1] - The central government has proposed comprehensive rectification requirements to address these issues, including strengthening self-discipline, promoting innovation, and eliminating non-compliant capacity based on energy efficiency and environmental standards [2] Group 2: Policy Developments - The chemical industry has seen a gradual deepening of anti-involution policies this year, with significant measures introduced such as the "National Unified Market Construction Guidelines" aimed at curbing repeated construction and market segmentation [2] - In June, a joint notice was issued by five ministries to assess old facilities in the refining and fertilizer sectors, focusing on safety, environmental protection, and energy efficiency to promote the exit of inefficient capacity [2] Group 3: Market Outlook - The industry is expected to see opportunities for supply-side reforms in areas with significant homogeneous competition, such as refining and certain pesticide varieties, as state-owned enterprises control capacity and new project approvals are restricted [3] - By August 2025, a recovery in overseas demand for certain chemical products and further domestic demand growth is anticipated, with a focus on investment in sectors with improved supply-demand dynamics and scarce resource attributes, particularly electronic resins [4] Group 4: Price Trends - As of July 2025, the China Chemical Product Price Index (CCPI) reported a decline of 5.6% from the beginning of the year, indicating a slight decrease in the prices of major chemical products [3] - International crude oil prices showed an upward trend in July, with Brent crude rising from $67.11 to $73.24 per barrel, influenced by geopolitical tensions and seasonal fuel consumption [4] Group 5: Sector-Specific Insights - The electronic resin sector is poised for growth due to increasing demand for high-frequency and high-speed copper-clad laminates, with a projected compound annual growth rate of 26% from 2024 to 2026 [5] - The phosphate fertilizer market is experiencing price increases driven by overseas agricultural recovery and supply disruptions, while the pesticide sector is expected to see price recovery due to increased demand and limited supply growth [5][6]

Core Insights - The report from Dongfang Securities indicates a significant year-on-year increase in China's pesticide formulation exports, driven not only by cyclical inventory replenishment but also by structural changes in the end-market, presenting opportunities for Chinese companies to reshape the global agricultural chemical value chain [1][2]. Group 1: Market Dynamics - The global agricultural chemical industry has nearly completed a two-year inventory destocking cycle, showing potential for bottom recovery, particularly with Brazil's demand recovery contributing marginally [1]. - Brazil, as the largest agricultural market globally, has faced adverse weather conditions affecting crop yields, but improvements in weather and planting area are expected to boost soybean and corn production by approximately 15% year-on-year for the 2024/25 planting year [1]. - The recovery in demand has led to a year-on-year increase in China's pesticide formulation exports and a correction in some raw material prices that had previously declined due to weak supply and demand [1]. Group 2: Structural Changes in the Market - The share of traditional multinational companies in Brazil's pesticide market has decreased from 80% to 70%, while the share of medium and large local companies and other multinationals has increased, primarily focusing on pesticide formulations [2]. - Many distributors and cooperatives in Brazil, which previously relied on local importers, are now turning to direct imports, further driving the increase in China's formulation exports [2]. Group 3: Growth Opportunities for Chinese Companies - The changes in the end-market structure validate the perspective that local operators are seeking to break free from the monopoly of traditional multinationals, allowing them to choose suppliers independently [3]. - This shift is expected to benefit Chinese companies that can quickly adapt to market demands, positioning them to seize growth opportunities in the agricultural chemical sector [3].

看好我国农药制剂出海企业的增长机遇 见微知著，终端市场主体结构的变化也一定程度验证了该行前期润丰股份深度报告对全球农化价值链重 塑的观点。即本土经营者希望摆脱传统跨国公司的垄断去自主选择供应商，而打破垄断格局下的价值泡 沫也是终端种植者喜闻乐见的变局;让农化产品回归生产资料，让农民获得更多价值。这一格局重塑的 背景下，在终端市场能够快速满足需求迭代的中国企业有望把握增长的先机。 全球农化产业链历经两年多的去库周期基本完结，具备底部复苏潜力。尤其作为全球最大的农化市场 国，巴西的需求复苏将带来较大边际拉动。23/24种植年巴西因为局部干旱和洪涝等极端天气影响导致 作物减产，叠加粮食价格下跌，农民收入预期下滑并打压农资采购和现金支付意愿，恶化的需求也传导 至上游渠道和工厂端。而今年以来，随着巴西天气条件改善及其长周期种植面积的持续提升，巴西国家 供应公司(CONAB)今年多次上调了24/25年巴西大豆玉米的产量预期，预计产量同比增幅都在15%左 右。同时CBOT粮食期货结算价在今年销售季也基本企稳，农民收入预期得到改善，推动产业链各环节 的需求复苏。需求压制的解除推动了我国农药制剂出口量的同比增长及部分原药价格在 ...

Group 1 - The National Standardization Administration of China announced that China has been approved by the International Organization for Standardization (ISO) to host the secretariat of the Technical Committee on Common Names for Pesticides and Other Agricultural Chemicals (ISO/TC 81), with Shenyang Chemical Research Institute Co., Ltd. as the secretariat unit [1][2] - This marks the first international secretariat in the field of agricultural standardization undertaken by China and the first to be located in Shenyang, Liaoning Province [1] - The ISO/TC 81 was established in 1953 and is responsible for the standardization of common names for pesticides and other agricultural chemicals, currently comprising 41 member countries and managing 3 international standards [1] Group 2 - The establishment of the ISO/TC 81 secretariat in Shenyang signifies international recognition of China's agricultural standardization efforts, which will significantly enhance China's international standing in the agricultural sector [2] - This development is also an important symbol of Shenyang's internationalization, promoting the city's expansion of foreign trade and enhancing international economic exchanges [2] - The secretariat will provide organizational support for the internationalization of Chinese standards and will greatly assist the healthy development of the pesticide industry in Liaoning Province and Shenyang City [1]

Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Viewpoints - The significant year-on-year growth in China's pesticide formulation exports is driven not only by cyclical inventory replenishment but also by structural changes in the end-market, presenting a structural opportunity for Chinese companies to reshape the global agricultural chemical value chain [2][8] - The recovery of demand in Brazil, the world's largest agricultural market, is expected to provide substantial marginal support, with soybean and corn production forecasts for the 2024/25 planting year expected to increase by approximately 15% year-on-year due to improved weather conditions [8][17] Summary by Relevant Sections Investment Recommendations and Targets - The report continues to favor companies with a rich product portfolio and excellent supply chain management capabilities, such as Runfeng Co., Ltd. (301035, Buy). It also highlights the potential for profit improvement from the recovery of key raw material categories, recommending Yangnong Chemical (600486, Hold), Xingfa Group (600141, Buy), and others [3] Market Dynamics - The global agricultural chemical industry has nearly completed a two-year inventory destocking cycle, indicating potential for bottom recovery. The structural shift in the purchasing entities in Brazil, where traditional multinational companies' import share has decreased from 80% to 70%, is crucial for the increase in China's pesticide formulation exports [8][9] - The changing structure of end-market purchasing entities, with a rise in non-traditional multinational players, is expected to enhance the growth opportunities for Chinese pesticide formulation companies [8] Future Outlook - The report emphasizes that the structural changes in the end-market purchasing entities validate previous insights regarding the reshaping of the global agricultural chemical value chain, allowing local operators to break free from traditional monopolies and choose suppliers independently [8]