Core Insights - The third China International Supply Chain Promotion Expo highlighted Syngenta Group's focus on sustainable agricultural development and innovative practices [1][2] - Syngenta Group showcased a series of achievements in sustainable agriculture, including regenerative agriculture projects and bio-based products that enhance crop quality and yield [1] - The company emphasizes soil health as a core agricultural concept, aiming to improve the ecological health of farmland through comprehensive measures [1][2] Group 1 - Syngenta Group has participated in the expo for three consecutive years, demonstrating its commitment to sustainable agricultural practices [1] - The company presented its full industry chain advantages in agriculture, from original innovations in laboratories to precision planting solutions empowered by AI [1] - Syngenta Group's systematic solutions include "good seeds + good products + good fields + good practices," promoting quality improvement and sustainable development in agricultural production [1] Group 2 - The company continues to launch green and efficient agricultural inputs that reduce usage while increasing yield and minimizing environmental impact [2] - Syngenta Group's Thick Soil Health Platform collaborates with the Panda Guide to create a closed-loop path for ecological agriculture, from soil restoration to brand recognition [2] - The company sets an industry example by providing valuable experiences and feasible paths for the green transformation and sustainable development of agriculture [2]

Core Viewpoint - The company reported a decline in annual revenue for 2024 but showed signs of recovery in the first quarter of 2025, with improved profitability and cost management initiatives yielding positive results [1][2][3] Financial Performance - For the full year 2024, the company achieved revenue of 29.488 billion yuan, a year-over-year decline of 10.0%, and a net loss attributable to shareholders of 2.903 billion yuan [1] - In Q4 2024, the company recorded revenue of 7.965 billion yuan, a quarter-over-quarter increase of 20.4%, but a net loss of 1.065 billion yuan, which increased by 12.9% compared to the previous quarter [1] - In Q1 2025, the company reported revenue of 7.173 billion yuan, a year-over-year decline of 4.5%, but achieved a net profit of 0.151 billion yuan, indicating a turnaround from losses [1] Industry Trends - Some small pesticide varieties have shown signs of price recovery, particularly in insecticides, despite an overall downward trend in pesticide price indices [2] - As of April 27, 2025, the pesticide price index reported a year-over-year decline of 6.1% but a month-over-month increase of 0.29% [2] - The sentiment in the pesticide industry appears to be improving, with expectations for price increases in major herbicides, which could enhance the company's profitability [2] Cost Management and Strategic Initiatives - The company's "Advancement" plan has begun to show results, with a significant reduction in sales expenses and a continuous decline in the sales expense ratio [2] - The company is optimizing cash flow and profitability, which is expected to continue improving in 2025 as expenses are further managed [2] Profit Forecast and Valuation - The net profit forecast for 2025 is maintained at 0.469 billion yuan, with a new forecast for 2026 at 0.627 billion yuan, reflecting a gradual recovery in performance [3] - The target price has been raised by 33.3% to 7.2 yuan, indicating a potential upside of 16.3% from the current stock price, based on improved quarterly performance and sector sentiment [3]

Core Insights - The company reported a revenue of 13.296 billion yuan for 2024, a year-on-year increase of 15.77%, but a decline in net profit attributable to shareholders by 41.63% to 450 million yuan [1] - The agricultural protection industry is nearing a bottom, with product prices continuing to decline but at a slower rate than in 2023 [2] - The company is expanding its global marketing network, with a significant increase in revenue from its To C business model [3] Financial Performance - In Q4 2024, the company achieved a revenue of 3.511 billion yuan, a year-on-year increase of 18.38%, but a quarter-on-quarter decrease of 14.44% [1] - For Q1 2025, the company reported a revenue of 2.686 billion yuan, a slight year-on-year decrease of 0.26% and a quarter-on-quarter decrease of 23.49% [1] - The gross profit margins for herbicides, insecticides, and fungicides decreased in 2024 due to falling product prices, with respective declines of 0.7 percentage points, 6.0 percentage points, and 0.1 percentage points [2] Cost and Expenses - Sales expenses increased by 51.1% to 654 million yuan in 2024, primarily due to higher overseas employee salaries and increased consulting, travel, advertising, and export credit insurance costs [2] - Financial expenses rose significantly due to increased foreign exchange losses, impacting the company's overall performance [2] - In Q1 2025, the gross margin decreased by 0.8 percentage points to 19.3% year-on-year, but improved by approximately 1.1 percentage points compared to Q4 2024 [2] Market Expansion - The company has established six manufacturing bases and over 110 subsidiaries globally, operating in more than 100 countries [3] - By the end of 2024, the company held over 7,700 pesticide registration certificates, with 1,000 new registrations obtained during the year [3] - Revenue from the company's To C business model reached 5.01 billion yuan in 2024, a year-on-year increase of 28.9%, with its revenue share rising by 3.8 percentage points to 37.65% [3] Profit Forecast - Due to the decline in agricultural product prices and increased expenses, the company's 2024 performance was below previous expectations [4] - The profit forecast for 2025-2027 has been adjusted upwards, with expected net profits of 979 million yuan, 1.228 billion yuan, and 1.520 billion yuan respectively [4]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a revenue of 13.296 billion yuan in 2024, a year-on-year increase of 15.77%, but the net profit attributable to shareholders decreased by 41.63% to 450 million yuan [5] - The agricultural protection industry is at a low point, with exchange rate losses impacting the performance in 2024 and Q1 2025 [6] - The company has seen a significant increase in its To C business revenue, which reached 5.01 billion yuan in 2024, a year-on-year growth of 28.9% [7] Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 35.11 billion yuan, a year-on-year increase of 18.38%, but a quarter-on-quarter decrease of 14.44% [5] - For Q1 2025, the company reported a revenue of 26.86 billion yuan, a slight year-on-year decrease of 0.26% and a quarter-on-quarter decrease of 23.49% [5] Industry Insights - The overall prices of agricultural protection products continue to decline, but the rate of decline in 2024 is less than in 2023, indicating that the industry has likely bottomed out [6] - The company has expanded its global marketing network, with over 110 subsidiaries and operations in more than 100 countries [7] Profitability and Forecast - The report adjusts the profit forecasts for 2025-2027, expecting net profits of 979 million yuan, 1.228 billion yuan, and 1.520 billion yuan respectively [8] - The company’s gross margin is projected to decline to 18.7% in 2025 but is expected to improve in subsequent years [12]