Yangnong Chemical (600486) Interim Review： The first half of the year results steadily increased Q2 insecticide sector shift
Yangnong Chemical (600486) Interim Review: The first half of the year results steadily increased Q2 insecticide sector shift
Core point of view: The company’s net profit attributable to mothers increased every year in the first half of the year.
5%, interim report performance in line with expectations.
The company’s 2019 interim report realized operating income of 28.
9 trillion, down 6 a year.
5%, net profit attributable to mother 6.
27 ppm, an increase of 11 years.
Q2 achieved operating income of 13.
2 trillion, molecular weight of 15 ring.
7%, net profit attributable to mother 3.
0 trillion, constant 8 than the ring.
The decrease in the company’s revenue in the first half of the year was mainly affected by the herbicides sector. According to the company’s 2019 interim report, the shrinking sales of core varieties of wheat straw 杭州桑拿 led to a decrease in the company’s export revenue.
9%; second-quarter performance was mainly affected by the quarter-on-quarter displacement of the pesticide sector.
The company’s gross profit margin for the first half of the year was 34.
5%, an increase of 3.
6pct, mainly due to the upward impact of the agricultural pyrethroid product boom.
Insecticide business extended quarter-on-quarter.
According to the 2019 interim report and operating data announcement, the company’s pesticide business achieved revenue in the first half of the year18.
1 ppm, an increase of 21 in ten years.
4%, sales of 7,854 tons, an increase of 8.
6%, with an average sales price of 23.
1 million / ton, up 11 per year.
Among them, the Q2 pesticide business achieved revenue7.
0.94 million yuan, down 22% month-on-month, sales of 3,741 tons, down 9% month-on-month; average price 21.
230,000 yuan / ton, down 14 from the previous month.
The quarter-on-quarter decline in insecticide prices was mainly caused by structural adjustments. Overall, the company’s pesticide core varieties agricultural pyrethroid boom remained high.
The overall herbicide business is sluggish, and we look forward to heavy wheatgrass in the future.
According to the 2019 interim report and operating data announcement, the herbicide business achieved revenue in the first half of the year6.
41 trillion, a year-on-year decrease of 50%, sales volume 2.
08 Initially, the year fell 34% and the average sales price was 3.
08 thousand yuan / ton, down 23%.
In the second quarter, the herbicide business continued the downturn in the first quarter. The export volume of the core varieties of wheat straw was significantly inclined. Considering the stable supply pattern of wheat straw, the continued expansion of genetic modification in the future will promote a stable rebound.
Earnings forecast: We expect the company’s net profit attributable to mothers to be 11 to 21 years.
1 trillion, corresponding to the current maximum PE is 14 respectively.
Maintain the company’s reasonable value at 62.
The judgment of 90 yuan / share, the PE corresponding to the 19-year forecasted earnings is 17 times, maintaining the “Buy” rating.
Risks suggest that lower downstream demand will lead to the expected sales volume of the company’s products; factors such as expected expansion of production will lead to changes in the prices of major products; factors such as environmental protection approvals will cause the company’s capacity reduction schedule to exceed expectations.