Yangnong Chemical (600486): Significant growth in performance

Yangnong Chemical (600486): Significant growth in performance

The company released its semi-annual report for 2019 and realized revenue28.

94 ppm, a reduction of 6 per year.

49%; Realize net profit attributable to mother 6.

27 ppm, an increase of 11 per year.

46%; deduction of non-net profit5.

84 ‰, an increase of 4 per year.

71%; EPS2.

02 yuan.

Permethrin continued its high economic performance, with performance in line with expectations.

The company achieved revenue of 28 in the first half of 19 years.

94 ppm, a reduction of 6 per year.

49%; of which, pesticides achieved revenue of 18.

12 ppm, an increase of 21 in ten years.

44%; Herbicide achieves revenue 6.

41 trillion, down 49 a year.

61%.

The company’s pesticide 佛山桑拿网 sales in the first half of 19785.

64 tons, an annual increase of 8.

55%, the average sales price of pesticides in the first half of 23.

08 thousand yuan / ton, previously increased by 11.

87%; According to Zhuochuang data, the average price of kungfufen in the first half of 19 was 35.

11 million / ton, with an annual increase of 39.

72%, the average price of bifenthrin is 38.

16 million / ton, an annual increase of 9.

55%, average price of cypermethrin 13.

120,000 yuan / ton, up 5 previously.

56%.

The company’s herbicide sales in the first half of 192.

For the first time in 08, it fell by 34 each year.

38%, mainly due to the sales breakdown of dicamba; the average selling price of herbicides in the first half of the year3.

08 million yuan / ton, a decline of 23 per year.

26%; according to Zhuochuang data, the average price of dicamba in the first half of 19 was 9.

510,000 yuan / ton, a short-term decline of 6.

88%, glyphosate average price 2 in the first half.

46 million tons / ton, down 5 per year.

57%.

The company’s gross profit margin in the first half of the year was 34.

79%, an increase of 3 per year.6PCT; selling expenses 33.34 million yuan, a decrease of 10 per year.

28%; administrative expenses 1.

2.7 billion, an increase of 35 per year.

59%; R & D expenses1.

1.6 billion, down 9 every year.

78%; Finance costs -67.

930,000 yuan, a reduction of 1173 per year.

520,000 yuan; period expense ratio 9.

54%, an increase of 1 per year.

55PCT; gains from changes in fair value were 30.66 million yuan, compared with -3172 in the same period last year.

40,000 yuan; net interest rate 21.

74%, an increase of 2 a year.

68PCT; The two major subsidiaries of the company, Jiangsu Youjia and Jiangsu Youshi, each with 5% minority shareholders ‘equity replaced in the current period, and minority shareholders’ equity was also reduced.

In the second quarter of 19, the single quarter revenue was 13.

24 ppm, a decrease of 10 per year.

82%, a month-on-month decrease of 15.

66%; net profit attributable to mothers was achieved in the second quarter in a single quarter3.

00 ppm, an increase of 3 per year.

88%, down 8 from the previous month.

45%; second quarter net profit margin 22.

64%, an increase of 3 per year.

20PCT, an increase of 1 from the previous quarter.

78%.

The pesticide market is facing challenges, and the company’s profitability is stable and significant. The acquisition of Sinochem Crops and Agro-Research is undergoing equity transfer.

In the first half of 19th, the global agrochemical market entered a downward cycle of the industry. Due to the impact of major safety accidents in Jiangsu, safety and environmental inspections were unprecedented. Some parks and manufacturers stopped production and the cost of raw materials rose.

Under multiple challenges, the company continued to deepen its cooperation with multinational giants of pesticides, and many customers have previously improved from last year; sales of major key varieties have seized the opportunity of tight supply of pyrethrin in a short period of time, and both volume and price have risen to maintainA good economic benefit.

On June 5, 2019, the company’s board of directors approved it to pay cash9.

The acquisition plan of 1.3 billion US dollars to acquire 100% equity of Sinochem Crops and Agricultural Research Corporation is currently undergoing equity delivery. After the reorganization is completed, the company will integrate the core assets of Sinochem International’s pesticide business to form an integration of research, production and sales.A more complete industrial chain, through effective integration of research and development resources and sales networks, and product and customer complementary advantages, give full play to collaborative exchanges and expand market share.

Rudong new project is expected to be gradually put into production next year, and growth is expected to become the mainstream.

The company plans Rudong Phase III, Phase IV and Phase 3.

26 Vitamin Pesticide Preparation Project.

The investment amount of Rudong Phase III is 20.

2.2 billion, expected to achieve revenue after reaching production.

4.1 billion, net profit3.

7.2 billion; investment in Rudong Phase 4

30 trillion, expected to achieve revenue of 10.

23 ppm, net profit 1.

2.8 billion; 3.

26 candidate pesticide preparation project investment 2.

02 trillion, expected to achieve revenue 6.250,000 yuan, net profit 72.73 million yuan.

The company basically did not add new capacity in 19 years, it is estimated that it will be slightly suppressed. The gradual release of capacity next year will continue the growth path.

Maintain “Highly Recommended-A” investment rating.

Considering the acquisition of Sinochem Crops and Agro-Research, we expect the company to achieve revenue of 74 in the year 19-21.

6.9 billion, 103.

7.4 billion and 121.

6.9 billion, net profit attributable to mothers11.

7.7 billion, 14.

1.5 billion and 17.

4.9 billion, with EPS of 3.

80 yuan, 4.

57 yuan and 5.

64 yuan, PE is 14 respectively.

2 times, 11.

8 times and 9.

5 times.

Maintain “Highly Recommended-A” investment rating.
Risk reminders: the risk of slower capacity release due to the uncertainty of government approval; the risk of continued low downstream demand; the risk of Sino-US trade 南宁桑拿 friction affecting the company’s exports; the risk of product price fluctuations