Core Viewpoint - Jiangsu Fengshan Group Co., Ltd. maintains an AA- credit rating with a stable outlook, reflecting its strong product structure and customer quality, despite facing challenges in profitability and industry conditions [4][9]. Company Overview - The company primarily engages in the research, production, and sales of pesticide active ingredients, formulations, and fine chemical intermediates [11]. - The fine chemical segment has entered trial production, enhancing the company's product chain and competitiveness [6][11]. Financial Performance - Total assets as of March 2025 are 27.81 billion, with equity attributable to shareholders at 15.91 billion [4]. - Revenue for 2023 is reported at 3.22 billion, a decline from 10.44 billion in 2022, with a net profit of 0.15 billion, recovering from a loss of 0.42 billion in 2022 [4][5]. - The company’s operating cash flow has been negative, indicating challenges in cash generation [4]. Industry Environment - The pesticide industry is currently at a cyclical low, with a projected slight decline in revenue for 2024, while the net profit is expected to remain a loss of 0.39 billion [6][9]. - The global pesticide market is expected to grow from 790.6 billion in 2024 to 1,185.1 billion by 2031, driven by increasing food demand and pest control needs [14]. Risks and Challenges - The company faces risks related to the commercialization of sodium-ion electrolyte products, which are not progressing as expected, leading to underutilization of production capacity [7][8]. - Environmental and safety production risks are heightened due to stricter regulations in the chemical industry [8][9]. Market Position - The company has a competitive edge in its core pesticide products, with significant market share in active ingredients like Fluorochloromethane and Quinclorac [15][16]. - The sales concentration remains low, with a diverse customer base, reducing dependency on a few clients [19]. Future Outlook - The credit rating agency maintains a stable outlook for the company, anticipating gradual recovery in market demand and pricing for its main products [9][12]. - The company is actively managing inventory and production to align with market conditions, indicating a strategic approach to navigating current challenges [19].

Investment Rating - The report gives a "Strong Buy" rating for Hunan Haili, with a target price of 9.9 CNY per share [2][11]. Core Viewpoints - Hunan Haili is a leading company in the carbamate pesticide industry, leveraging its strong R&D capabilities and abundant resources to maintain a dominant market position. The company is expected to benefit from the recovery of the pesticide industry and the expansion of its unique product, Methyl Pyrimidine Phosphorus [7][9][10]. - The report anticipates significant revenue growth for the company, projecting revenues of 2,471 million CNY in 2024, increasing to 4,775 million CNY by 2027, with a compound annual growth rate (CAGR) of 34% from 2024 to 2027 [3][11]. Financial Summary - **Revenue Forecast**: - 2024: 2,471 million CNY - 2025: 3,243 million CNY (31.3% YoY growth) - 2026: 4,016 million CNY (23.8% YoY growth) - 2027: 4,775 million CNY (18.9% YoY growth) [3][11] - **Net Profit Forecast**: - 2024: 265 million CNY - 2025: 368 million CNY (38.6% YoY growth) - 2026: 502 million CNY (36.5% YoY growth) - 2027: 633 million CNY (26.0% YoY growth) [3][11] - **Earnings Per Share (EPS)**: - 2024: 0.47 CNY - 2025: 0.66 CNY - 2026: 0.90 CNY - 2027: 1.13 CNY [3][11] - **Valuation Ratios**: - Price-to-Earnings (PE) Ratio: Expected to decrease from 15 in 2025 to 6 in 2027 - Price-to-Book (PB) Ratio: Expected to decrease from 1.3 in 2025 to 1.0 in 2027 [3][11]. Company Overview - Hunan Haili is recognized as the first listed company in Hunan Province, with a strong backing from the Hunan Provincial State-owned Assets Supervision and Administration Commission [15][24]. - The company has established a robust production capacity of 28,000 tons for carbamate pesticides, with additional capacity being released from its Ningxia base [7][9][10]. Industry Insights - The carbamate pesticide sector is expected to experience a recovery due to the increasing demand for high-toxicity traditional pesticides, which are currently in short supply [7][9][45]. - The global pesticide market has shown a consistent growth trend, with an average annual growth rate of approximately 4.2% from 2017 to 2023, driven by the rising global population [46][49].

Core Viewpoint - The company has adjusted the expected operational status date for its "Green Pesticide Formulation Intelligent Digital Factory Technology Renovation Project" from June 30, 2025, to March 31, 2026, due to project progress and equipment trial runs [1] Summary by Relevant Sections - Project Timeline Adjustment - The board and supervisory board approved the adjustment of the project's expected operational status date [1] - The new expected operational status date is now set for March 31, 2026 [1] - Investment Progress - As of June 21, 2025, the project has accumulated an investment of 33.0486 million yuan, representing a progress rate of 77.42% [1] - Impact on Operations - The adjustment will not adversely affect the company's operations and is in compliance with relevant regulations [1]

Market Overview - The total trading volume in the Shanghai and Shenzhen markets reached 1.6 trillion yuan, an increase of 188.2 billion yuan compared to the previous trading day [1] - The military, securities, internet finance, and insurance sectors saw the highest gains, while oil and gas, pesticides, film, and port sectors experienced the largest declines [1] - By the end of the trading session, the Shanghai Composite Index rose by 1.03%, the Shenzhen Component Index increased by 1.72%, and the ChiNext Index surged by 3.11% [1] Investment Strategy - The company has initiated a position in the reducer sector and is currently fully invested, planning to sell the liquor concept the following day based on post-market quantitative analysis [3] - Continuous evaluation of past operations is emphasized to identify areas for improvement, ensuring the investment strategy remains competitive [3] - The company plans to sell the liquor sector and buy into the deep-sea technology sector, indicating a clear and decisive strategy [6] Sector Analysis - The deep-sea economy has shown significant potential, with a notable increase in RPS (Relative Price Strength) metrics over time, indicating strong performance [7] - The deep-sea technology sector is gaining attention from policy levels, with expectations for future industrial policies and major project implementations [7] - The total value of China's marine economy surpassed 10 trillion yuan in 2024, highlighting deep-sea technology as a crucial emerging industry for economic growth [7] - The deep-sea industry has a long supply chain, contributing significantly to economic stimulation across various stages from upstream technology development to downstream application services [7]

Core Viewpoint - Jiangsu Yangnong Chemical Co., Ltd. has not met the conditions for the second lock-up period of its 2022 restricted stock incentive plan, leading to the repurchase and cancellation of a portion of the restricted stocks [1][11]. Group 1: Implementation of the Incentive Plan - The company approved the 2022 restricted stock incentive plan at its fourth meeting, with independent directors expressing agreement [3][4]. - The plan's first grant date was set for May 18, 2023, with 228 participants receiving restricted stocks [4][5]. Group 2: Repurchase and Cancellation Details - The company plans to repurchase and cancel 1,265,145 shares of restricted stock from 260 participants due to unmet performance conditions for the second lock-up period [7][9]. - The repurchase price for the first grant participants is set at 38.35 yuan per share, while for reserved grant participants, it is 31.52 yuan per share [7][10]. Group 3: Performance Conditions - The performance conditions for the second lock-up period included a net asset return rate and a compound growth rate of net profit, both of which were not met in 2024 [8][9]. - The actual net asset return rate for 2024 was below the required threshold, and the compound growth rate of net profit also failed to meet the 15% target [8][9]. Group 4: Legal Compliance and Conclusion - The company has followed necessary approval and authorization procedures for the repurchase and cancellation, complying with relevant laws and regulations [11][12]. - The company is required to fulfill information disclosure obligations and complete the necessary registration and changes related to the stock cancellation [12].

Summary of Key Points from Conference Call Records Industry and Company Overview - **Yingshi Innovation**: Leading global provider of panoramic cameras with a market share of 67.2%. The handheld smart imaging device market reached RMB 36.47 billion in 2023, growing at 14.3% annually. The panoramic camera market is valued at RMB 5.03 billion, with future growth expected from the integration of panoramic and action cameras and emerging applications [1][5]. - **Sikang Technology**: Dominates the industrial-grade 3D laser scanner market, holding the top position in China and second globally. Revenue projections for 2022-2024 are RMB 210 million, RMB 270 million, and RMB 330 million, with an annual growth rate of 20%-30% [1][12]. - **Hanshuo Technology**: The third-largest electronic shelf label supplier globally, with a domestic market share of approximately 12%. The global electronic shelf label market is expected to reach RMB 35 billion by 2028 [1][14]. - **Taihe Co., Ltd.**: A leading pesticide manufacturer in China, with core products like Bacillus thuringiensis accounting for over 50% of global capacity. Revenue projections for 2022-2024 are RMB 5.1 billion, RMB 3.87 billion, and RMB 4.24 billion [1][20]. Core Insights and Arguments - **Yingshi Innovation**: The company maintains a strong position in the smart imaging device market, with a balanced online and offline sales strategy. The introduction of the X5 series panoramic camera has seen high demand due to its advanced features [3][8]. - **Sikang Technology**: The company has established strong partnerships with major automotive and aerospace firms, indicating a solid competitive advantage in high-precision markets [11]. - **Hanshuo Technology**: The company is well-positioned to benefit from the increasing penetration of electronic shelf labels in retail, driven by rising labor costs and inflation [16][15]. - **Taihe Co., Ltd.**: The company has a robust international presence through long-term collaborations with multinational corporations, enhancing its market position [21]. Financial Performance - **Yingshi Innovation**: Revenue is projected to grow from RMB 2.04 billion in 2022 to RMB 5.57 billion in 2024, with an average growth rate exceeding 50%. The expected revenue for the first half of 2025 is between RMB 3.2 billion and RMB 3.8 billion [10]. - **Sikang Technology**: Revenue is expected to grow steadily, with net profits increasing significantly in the first quarter of 2025 [12]. - **Hanshuo Technology**: Revenue is projected to increase from RMB 2.8 billion in 2022 to RMB 4.49 billion in 2024, despite a slight decline in Q1 2023 [19]. - **Taihe Co., Ltd.**: Revenue is expected to stabilize despite slight declines in 2023, with a significant increase in net profit in Q1 2025 [25]. Potential Risks - **Sikang Technology**: Faces risks related to its small revenue base and the competitive landscape, as well as macroeconomic factors affecting industrial clients [13]. - **Taihe Co., Ltd.**: Risks include price volatility in agricultural products, uncertainties in the promotion of new varieties, and potential trade policy fluctuations [26]. Additional Important Insights - **Emerging Applications**: Yingshi Innovation is exploring new fields such as VR real estate viewing, panoramic news broadcasting, and security monitoring, which could provide additional growth opportunities [9]. - **Market Trends**: The electronic shelf label market is expected to grow significantly, with a current penetration rate of only 15% globally, indicating substantial room for growth [15].

Group 1 - The stock of 科前生物 (688526) has a comprehensive score of 37.92, indicating a weak performance [1] - The main cost analysis shows that the current main cost is 15.50 yuan, with a 5-day main cost of 15.31 yuan, a 20-day main cost of 16.20 yuan, and a 60-day main cost of 15.93 yuan [1] - Over the past year, the stock has not experienced any limit-up or limit-down events [1] Group 2 - On June 24, 2025, the stock faced a short-term resistance level of 15.50 yuan and a support level of 15.11 yuan, while the mid-term resistance is at 17.07 yuan and support at 15.11 yuan [2] - The current market trend is unclear, with expectations for main funds to choose a direction [2] - The K-line pattern indicates a bullish outlook, with a "solid bullish line" and "three rising soldiers" suggesting a potential bottoming out [2] Group 3 - On June 24, 2025, the net outflow of main funds was 83.87 million yuan, accounting for -2% of the total transaction amount [2] - There was no net inflow from large orders, while retail investors experienced a net outflow of 98.42 million yuan [2] - Related industry sectors include pesticide and veterinary medicine (1.32%), in vitro diagnostics (1.09%), virus prevention (1.44%), and biological vaccines (1.61%) [2]

Group 1: Industry Overview - The petroleum and chemical indices primarily experienced declines last week, with the chemical raw materials index down by 1.16% and the chemical pharmaceutical index down by 5.37% [1] - The international crude oil prices showed high volatility due to the conflict between Israel and Iran, with WTI crude oil futures settling at $74.93 per barrel, up 2.67%, and Brent crude oil futures at $77.01 per barrel, up 3.75% as of June 20 [1] Group 2: Chemical Products Performance - The top five rising petrochemical products included p-xylene up by 10.53%, aniline up by 6.53%, purified terephthalic acid up by 6.01%, butyl acrylate up by 5.19%, and C9 fraction up by 4.96% [1] - The top five declining petrochemical products included liquid chlorine down by 60%, vitamin D3 down by 8.57%, acrylic short fiber down by 7.89%, vitamin E down by 6.25%, and methyl acrylate down by 5.88% [1] Group 3: Capital Market Performance - The top five rising listed chemical companies in the Shanghai and Shenzhen markets included Tongyuan Petroleum up by 42.09%, Zhun Oil Co. up by 40.23%, Jinniu Chemical up by 27.43%, Maohua Shihua up by 22.67%, and Honghe Technology up by 22.58% [2] - The top five declining listed chemical companies included ST Haiyue down by 38.85%, Aoyang Health down by 26.33%, Huaye Fragrance down by 20.41%, Jiangtian Chemical down by 19.22%, and Shanshui Technology down by 18.77% [2]

"一证一品"新政催生新风口 与会专家认为，目前药肥市场正经历从"概念导入"到"规模爆发"的质变阶段。农药新政的实施，将对行 业良性发展起到关键作用。随着政策的落地，行业将迎来前所未有的洗牌，而拥有丰富证件资源、技术 和产品优势的企业，将在新一轮市场博弈中占据绝对优势。 会上，金正大首次推出长效药肥新品牌。"长效药肥意味着'药长效'和'肥长效'，通过内添加工艺和金正 大缓控释肥技术以及德国施诺德技术2.0加持，将大大延长药肥效果。"农业农村部植物营养与新型肥料 创制重点实验室副主任、金正大研究院院长李新柱介绍。 会上，金正大集团联合世界生态农业合作组织、中国农药工业协会等成立药肥一体化推广战略联盟。联 盟倡议，下一步要坚持守正创新，对行业进行全方位的改革，共同营造良性健康发展的药肥产业发展环 境，让药肥新技术造福更多农民，为全球农业绿色转型贡献更多中国智慧与中国方案。 图为药肥一体化推广战略联盟成立仪式。 (企业供图) "'一证一品'的出台对药肥影响最大。"中国农药工业协会助理秘书长段又生表示，当前国内农药登记数 量超过4.8万，药肥登记不足1%，这个"洼地"将成为行业争相奔赴的"蓝海"。 世界生态农业合作组织 ...

Investment Rating - The report maintains an "Accumulate" rating for the basic chemical industry [5] Core Views - The chemical industry is currently in a downcycle, with recent safety incidents leading to stricter regulations on high-risk chemical projects. Leading companies with better safety management and advanced production technologies are expected to benefit from stable production amidst supply constraints [2][3] - The recent suspension of the Gaomi Renhe Chemical Industrial Park in Shandong due to a major safety incident will impact the supply of chlorantraniliprole and its intermediates, leading to price increases in the market [1][2] - The report suggests focusing on leading companies in the chemical sector, such as Wanhua Chemical, Hualu Hengsheng, and Yangnong Chemical, which are expected to maintain long-term value [2][4] Summary by Sections Industry Overview - The chemical industry is experiencing a downturn, with safety incidents prompting tighter regulations on high-risk projects. Leading firms are likely to benefit from their superior safety protocols and production capabilities [2] Recent Developments - A significant safety accident at Shandong Youdao Chemical has led to the suspension of the Gaomi Renhe Chemical Industrial Park, affecting the supply of chlorantraniliprole and its intermediates. This has resulted in a strong cost support for chlorantraniliprole, with market prices reaching 305,000 CNY per ton as of June 20 [1] Investment Recommendations - The report recommends focusing on companies involved in chlorantraniliprole, such as Lier Chemical, and those with K amine, like Lianhua Technology. It also suggests looking at competitors of chlorantraniliprole, such as Yangnong Chemical [1][2] - For the upstream oil and gas sector, companies like China Petroleum, Sinopec, and CNOOC are highlighted as potential investment opportunities [4] Price Trends - The report tracks price movements of key chemical products, noting significant increases in diesel and Brent crude oil prices, which rose by 10.97% and 10.58% respectively over the past week [18][19] Sub-industry Dynamics - The report highlights various sub-industries, including the polyester market, which is experiencing price fluctuations due to seasonal demand changes. The polyurethane market is facing weak domestic demand, while the titanium dioxide sector is seeing supply constraints due to structural adjustments [21][22]