Yangnong Chemical(600486) 华鑫证券·2025-04-08 09:56Investment Rating - The report maintains a "Buy" investment rating for the company [1][10]. Core Views - The pesticide industry is currently in a downturn, leading to pressure on the company's performance as it enters a low-profit era [5]. - Despite challenges, the company has shown resilience through effective cost control and strategic adjustments in production structure, ensuring long-term stable operations [5]. - The company is positioned to benefit from the recovery of the pesticide industry, with projected revenue growth in the coming years [10]. Summary by Sections Market Performance - The company reported a total revenue of 10.435 billion yuan in 2024, a year-on-year decline of 9.09%, with a net profit of 1.202 billion yuan, down 23.19% [4][10]. Investment Highlights - In 2024, the company's raw material sales volume increased by 3.5% to 99,900 tons, while the sales revenue from raw materials decreased by 13% due to falling prices [5]. - The company maintained its leading position in the domestic market through deepened customer cooperation and innovative business models, resulting in a 4% increase in trade sales [5]. - The formulation business saw a slight sales volume increase of 1.77% to 36,300 tons, but sales revenue declined by 8% [5]. Financial Dynamics - The company's operating cash flow for 2024 was 2.155 billion yuan, a decrease of 9.99% year-on-year, primarily due to extended sales periods and reduced income [6]. - The company maintained stable expense ratios across sales, management, finance, and R&D, with slight increases in sales expenses attributed to customer management efforts [6]. R&D and Product Development - The company emphasizes dual-driven development in patented and non-patented products, aiming to penetrate high-end markets with innovative products [7][9]. - The company has made significant technological breakthroughs in pyrethroid products, filling 20 technical gaps and holding over 50 product varieties [9]. Profit Forecast - Revenue projections for 2025-2027 are 12.212 billion yuan, 13.825 billion yuan, and 14.908 billion yuan, respectively, with corresponding PE ratios of 13.6, 11.7, and 10.7 [10][12].