Yangnong Chemical (600486) in-depth report: recalling the glorious four due to resonance and looking forward to the future grand exhibition

Yangnong Chemical (600486) in-depth report: recalling the glorious four due to resonance and looking forward to the future grand exhibition

The main points of the report go back: the benchmark companies in the pesticide industry are the largest enterprises in the domestic biomimetic pesticide industry, and 杭州桑拿 they are mainly engaged in pesticides, herbicides and fungicides.

From the company’s listing in 2002 to the end of 2018, the compound annual growth rates of revenue and performance were 19 respectively.

6% vs. 25.

3% since listing (2019.

4.

25) The former restoration of power continued to achieve 1136.

4% growth, annualized return rate reached 15.

9%.

By comparing the compound growth rate of SW pesticide companies since their listing, the average ROE and other indicators can be found that the companies are in the leading position in the industry.

Analysis: R & D logging, strategic review of the company’s historical profile, key events, and performance growth can be found. The core driving force for the company’s rapid development comes from high investment in research and development, strategic choice of key points in time, and integration from the industrial chain.The four major factors of integration and transformation of the park into the park and the accumulation of safety and environmental protection are synergistic resonance.

In terms of research and development, the company’s research and development expansion has led the industry for a long time, and a variety of product technologies have reached advanced levels at home and abroad. It has been transformed into the four categories of pesticides, herbicides, fungicides, and plant growth regulators.

In terms of strategy, the company’s three large-scale capital investments in 2008, 2014, and 2016, which did not miss the opportunity, have successfully brought rapid performance improvement to the company.

In terms of the construction of the park, the company has gradually developed from the integration of the industrial chain to the integration of the park after years of development. At present, the company is vigorously building a company that is aligned with mature chemical parks abroad.

In terms of safety and environmental protection, the company has achieved major breakthroughs through the continuous upgrade of safety and environmental protection construction to ensure the company’s long-term development.

Prospects: Hengqiang, the strongest company, and the company went up to the next level. The event of “a stone stirs up thousands of waves”, Yancheng decided to shut down the Xiangshui Chemical Park.

Domestic safety and environmental protection are expected to tighten, and Jiangsu ‘s pesticide output will be relatively high, and the waves will scour in the sand. It is expected that the supply side of the industry has the potential to create, while the safety and environmental protection standards and the integration advantages of leading cities will increase.

The company will benefit significantly as a pesticide leader with significant comprehensive advantages.

At the same time, the company is / planning to construct the third and fourth phase of Nantong Youjia Pesticide Project to increase the scale of production capacity and enrich the pesticide category. It plans to outsource the acquisition of Sinochem International’s related assets, Baoye’s equity, and multilateral efforts to promote development.

Investment suggestion: Maintain the “Buy” rating back in the past, the company ‘s high investment in research and development, strategic choices at key points in time, from the integration of the industrial chain to the integration and upgrading of the park, and the accumulation of safety and environmental protection layout.Growth; Looking forward to the future, the company will take advantage of the trend of agglomeration of safety and environmental protection industries to transfer the development and changes of the rapid construction of new projects, as well as the planned outbound mergers and acquisitions of Sinochem International Assets and Baoye’s equity, and move towards a new stage of development.

The company’s EPS is expected to be 3 in 2019-2021.

43 yuan, 4.

04 yuan, 4.

65 yuan.

Risk Warning: 1.

The company’s project construction was less than expected; 2.

Significant changes have taken place in environmental regulatory policies.