Yangnong Chemical (600486): Volume and price of pyrethroid rose in peak season
The company released the first quarter report for 2019, and the gross profit margin increased significantly. The company released the first quarter report for 2019 and achieved revenue of 15.
70 ppm, 10-year average2.
50%; achieve net profit attributable to mother 3.
27 ppm, an increase of 19 years.
43%, net profit after deducting non-recurring3.
20,000 yuan, an increase of 16 in ten years.
In terms of profit margin, the company achieved a gross profit margin of 35 due to the increase in volume and price during the peak season of the pyrethroid business.
75%, an increase of 3 over the same period last year.
28 pct, the company’s gross profit margin reached a new high; the net profit margin was 20.
85%, an increase of 2 over the same period last year.
In terms of expense ratios, the company entered a sales expense of zero.
1.7 billion, with revenue accounting for 1.
11%, a year increase of 0.
03pct; Management and R & D expenses 1.
3.1 billion, accounting for 8.
32%, an increase of 1 per year.
18 pct; financial expenses 0.
21 trillion, compared with 0 in the same period last year.
Enter the company to accrue asset impairment losses of 0.
30 trillion, mainly because the increase in the account is greater than the same period of the previous year, the corresponding provision for bad debts increased; the fair value change income was entered as 0.
310,000 yuan, due to foreign exchange hedging.
In the peak season, the quantity and price of pyrethroid rose, and the loss of wheat straw dragged down the herbicide business to 都市夜网 achieve herbicide sales1.
06 for the first time, at least in the short term 42.
5%; average sales price 2.
97,000 yuan / ton, previously temporarily 23.
According to our model calculations, there is a contradiction in the probability of deviation in the sales of wheat straw in Q1. We are cautious about the company’s wheat straw shrinkage in 2019. In the long term, we expect to promote the worldwide wheat straw shrinkage-resistant seeds worldwide.Expected to pick up.
Achieved zero pesticide sales.
41 for the first time, an increase of 52 from the previous month.
2%, an increase of 16 per year.
0%; average sales price 24.
76 million / ton, an increase of 5 from the previous month.
90% increase by 17 per year.
In the coming season, the volume and price of the company’s pyrethroid business rose, contributing to the company’s main profit. Along with the 3-21 Xiangshui Incident fermentation, safety production and environmental protection inspection, the pesticide supply in Jiangsu and the whole country is expected to continue to tighten, and the company’s high profit promotion will continue.
The company’s long-term worry-free company Youjia’s third-phase project has begun construction. We judge that the third-phase project is expected to contribute incremental profits in 2020.
Calculating with reference to the return on investment in the construction of the Yangnong Air Force project, Youjia Phase III is expected to create a profit of nearly US $ 600 million for the company.
In addition, the investment in the fourth phase of Youjia is expected to continue to increase in the third phase, and the company’s long-term growth is worry-free.
Investment suggestion: We estimate the company’s net profit attributable to its mothers to be 11 in 19-21.
160,000 yuan, 12.
5 billion and 14.
480,000 yuan, EPS is 3 respectively.
60 yuan, 4.
03 yuan and 4.
67 yuan, PE is 16.
50X and 12.
52X, maintaining the “highly recommended” level.
Risk reminder: The new project is not up to expectations, the sales of dicamba are not up to expectations, the environmental protection is relaxed, the price of pyrethroids has fallen sharply, and the purchase of Sinochem assets has been too expensive.