Yangnong Chemical(600486) 申万宏源·2024-11-05 11:35Investment Rating - The report maintains a "Buy" rating for Yangnong Chemical (600486) [5] Core Views - Yangnong Chemical's Q3 2024 performance met expectations, with revenue of 8,016 million yuan (YoY -14%) and net profit of 1,026 million yuan (YoY -25%) [5] - The company's Q3 2024 revenue was 2,317 million yuan (YoY +5%, QoQ -8%), with net profit of 263 million yuan (YoY +11%, QoQ -21%) [5] - The gross profit margin for Q3 2024 was 23.51%, with a net profit margin of 12.01% [5] - The Huludao Youchuang project is progressing as expected, with the first phase in trial production and the second phase in electromechanical installation [5] - The company is expected to achieve net profits of 1,255, 1,603, and 1,962 million yuan for 2024, 2025, and 2026, respectively [5] Business Performance - In Q3 2024, the company's active pharmaceutical ingredient (API) business generated revenue of 1,497 million yuan (YoY +4%, QoQ -6%), with sales volume of 26,100 tons (YoY +12%, QoQ +4%) [5] - The formulation business revenue was 184 million yuan (YoY -5%, QoQ -46%), with sales volume of 6,200 tons (YoY +29%, QoQ -53%) [5] - Key product prices in Q3 2024: Bifenthrin 132,000 yuan/ton (YoY -17%, QoQ -3%), Cypermethrin 107,000 yuan/ton (YoY -16%, QoQ -0%), Glyphosate 25,100 yuan/ton (YoY -23%, QoQ -4%) [5] Financial Summary - The company's total operating income for 2024E is projected at 10,985 million yuan, with a net profit of 1,255 million yuan [6] - The gross profit margin for 2024E is expected to be 23.7%, with ROE at 11.8% [6] - Earnings per share (EPS) for 2024E, 2025E, and 2026E are forecasted at 3.08, 3.94, and 4.82 yuan, respectively [6] Project Development - The Huludao Youchuang project involves an investment of 4,238 million yuan to produce 15,650 tons of pesticide APIs, 7,000 tons of intermediates, and 66,133 tons of by-products annually [5] - The project is expected to generate annual revenue of 4,083 million yuan, with an ROI of 17.16% and an internal rate of return of 15.65% [5] - The project includes production of 4,500 tons/year of insecticides, 8,050 tons/year of herbicides, and 3,100 tons/year of fungicides [5]