Yangnong Chemical (600486) Interim Report Comments: Interim Results Meet Expected Endogenous Extension and Steady Growth
The event company announced the 2019 semi-annual report, the company realized operating income in the first half of 201928.
9.4 billion, down 6 previously.
49%, net profit attributable to mother 6.
2.7 billion, an increase of 11 per year.
The profit of the pyrethroid business is strong. The sales of herbicides are affected by trade frictions. The overall performance is in line with expectations. The company’s related business net profit margins have increased.The prices of esters and their key intermediates rose, and the company’s average price of pesticide products continued to increase11.
87%, affected by this, Ushi’s subsidiary with pesticides as its main product achieved operating income in the first half of 201912.
0.6 billion, an annual increase of 6.
7%. At the same time, the company’s industrial chain is complete. Benefiting from the decline in the prices of basic chemicals, Ushi’s net interest rate has increased.
59 up to 26.
04%, achieving a net profit of 3.
1.4 billion, an increase of 59 in ten years.
International trade frictions affect export sales: Affected by international trade frictions, the company’s export sales have declined 28.
94% of the products affected were large-tonnage herbicide dicamba, and its production capacity was located in the subsidiary Youjia. Due to the decrease in the company’s products, which are mainly based on long orders, the net interest rate of Youjia in the first half of 2019 was 23.
24% compared with the same period in 2018 22.
20% is basically the same, but due to the decrease in sales, revenue is twice a year.
05%, net profit is also temporarily cancelled 27.
64%, the company’s overall performance is in line with expectations.
The endogenous growth is stable, the extension development integrates overall high-quality resources, and maintains the “strongly recommended” rating. The company has completed the acquisition of minority shareholders of Youjia and Youshi subsidiaries. At the same time, it is acquiring neighboring Nantong Baoye to prepare land for future new projectsreserve.
The company intends to start with 9.
1.3 billion acquisition of 100% stake in Sinochem Crops and Agricultural Research Corporation, will develop the company’s formulation and pesticide research and development business, some of them are strong.
The company’s own third-phase project of Youjia is also steadily advancing. In the future, the production capacity of pyrethroid will be further expanded.
Without considering the acquisition for the time being, we expect the company’s net profit for 2019-2021 to be 10 respectively.
2.4 billion, the current sustainable corresponding PE is 16, 14, 11 times, respectively, maintaining the “strongly 西安桑拿网 recommended” level.
Risk warning: product prices drop sharply, Sino-US relations deteriorate, safety and environmental accidents