Yangnong Chemical (600486) 2019 First Quarterly Report Commentary Report： Overlapping financial costs of chrysanthemum overwhelmingly lower than expected
Yangnong Chemical (600486) 2019 First Quarterly Report Commentary Report: Overlapping financial costs of chrysanthemum overwhelmingly lower than expected
This report reads: Safety, environmental protection, high pressure caused by the high profit of chrysanthemum, the US soybean planting area is expected to maintain growth under the easing of trade frictions, Monsanto dicamba inventory is expected to be replenished, and the third phase of the East is expected to start in 2019 to ensure long-term growth.
Investment Highlights: Maintain overweight.
As the supply of pyrethroid is affected, it is expected to continue the boom and maintain the profit 杭州桑拿网 forecast. The EPS is expected to be 3 in 2019-2021.
04 yuan, because the third phase of Nantong is expected to start construction this year, maintaining a target price of 71.
61 yuan, corresponding to 21 times the PE in 2019, maintaining an overweight rating.
Permethrin’s high economic growth and reduced exchange losses reduced the first quarter of 2019’s performance beyond market expectations: in the first quarter of 2019, the company achieved revenue of 15%.
7 billion (YOY-2.
50%), achieving net profit attributable to mother 3.
2.7 billion (+ 19% year-on-year.
43%), exceeding market expectations.
The high growth in the first quarter of 2019 was mainly due to: (1) Perthrin was maintained at a high level under environmental protection and high pressure. Bifenthrin is currently reported at 400,000 tons / ton, which has increased by 34% since the beginning of 2018.Benefit.
At the same time, sales of pyrethroids also increased, and sales of pesticides in Q1 2019 continued to increase by 16%.
(2) The decrease in gains from foreign exchange losses in the first quarter resulted in a decrease in financial expenses in the first quarter by 2874 million.
In addition, the sales volume of wheat straw contracted somewhat, and the subsequent release of Sino-U.S. Trade frictions is expected to release normally.
It is safe, environmentally friendly, and maintains a high business climate under high pressure. The amount of pyraclostrobin is high.
The recent explosion in Xiangshui affected the supply of bifenthrin in the surrounding factories. The follow-up safety inspection will once again suppress the supply of the pesticide industry. Under the safety / environmental protection pressure, the pyrethrin will maintain its prosperity in the future.The price is stable at 19.
2 million / ton high, 2019 heavy volume boosted performance.
The third phase of Nantong is expected to start in the middle of 19 years.
The third phase of Nantong is located in the public announcement of environmental impact assessment, and construction is expected to start in mid-2019.
The project invested 2 billion yuan to build 11,475 tons of pyrethroids, 1,000 tons of herbicides and 3,000 tons of fungicides, which will contribute annual profits after reaching production.
Monsanto expects that wheat straw will fear Brazil’s promotion in 2020, and the company’s sales as a global leader will benefit from growth.
Risk warning: dicamba exports continue to be sluggish, and prices of pyrethroids fall