Yangnong Chemical (600486): Youjia Phase III and Phase IV continue to promote the leading pesticides and advance to the world relying on the Sinochem platform
Investment points: The outstanding domestic leading pharmaceutical companies, the third and fourth phases of Youjia continue to grow.
With the first and second phases of Youjia being gradually put into production, the company’s business scope has continued to expand. In terms of pesticides, the company is the world’s leading R & D and production company of pyrethroids, with 5,500 tons of agricultural pyrethroids and 2,600 tons of santhrins.On the other hand, it has a production capacity of 25,000 tons of dicamba, the world’s leading, and a production capacity of 35,000 tons of glyphosate by IDA. The fungicide sector has begun to take shape, with 600 tons of fluoroaniline and 1,000 tons of pyrazole ether bacteria. Therefore, the company alsoWith 300 tons of anti-pourester production capacity, 50 tons of mosquitoamine avoidance capacity, and upstream intermediates supporting their respective products, the company has developed into a high-standard integrated park enterprise with a reasonable industrial layout and complete product range.
Youjia’s third-phase expansion of production capacity of fungicides (permethrin and intermediates, oxadiazon, fluorophenylurea) production capacity of 11075 tons, herbicides (thienone, high cover) production capacity of 700 tons, fungicides (propiconazole, anisole methyl)Cyclazole) has a production capacity of 3,000 tons, and plans to expand production of 3,800 tons of bifenthrin, 1,000 tons of fluorophenamine, and 120 tons of santhrin in the fourth phase. Construction of the third and fourth phases is expected to start at the end of 19, which will continue the company’s growth.
The integration of the park and the integration of the industrial chain make the leader of the pyrethroid industry higher and more stable.
The domestic market share of the company’s santhrin is more than 70%; the domestic market share of the agricultural permethrin is 30%. Globally, it is second only to Sumitomo Chemical.
With the completion and commissioning of the second 杭州桑拿网 phase of Youjia, the production of pyrethroids has been basically completed. The high-tech parks have a high margin of environmental protection and safety, and the safety and environmental protection tends to benefit significantly.
The company started to synthesize intermediates and produce pyrethroids from basic chemical raw materials. It has nearly 4,000 tons of methyl tintinate and DV polyvinyl chloride, 1,000 tons of methyl chrysanthemic acid and 1,000 tons of chrysanthemic acid, and 2000 tons of acetylene.The system can not only ensure the supply of raw materials, but also reduce costs, and the industrial chain integration has obvious advantages.
The integration of the park and the integration of the industrial chain have set up higher barriers for the company’s pyrethroid business. At the same time, the company focused on research and development, successively conquered a variety of key pyrethrin technologies, and independently developed 63 new products, striving to create a world-leading platform-level pyrethroid.R & D and production center.
Fully benefit from the promotion of genetically modified seeds, and the downstream demand of the company’s herbicide products is guaranteed.
The herbicide products dicamba and glyphosate are combined with corresponding transgenic seeds, and the model of resistant transgenic seeds + herbicides is the mainstream of the current development of the herbicide industry.
Diceracycline demand is less than expected due to drift issues. The US EPA has extended Bayer (Monsanto) dicamba product life expectancy, and the demand for dicamba is expected to resume growth, and it will be released in Brazil in 2021 through dicamba-resistant genetically modified soybeans. Demand in South AmericaIt will usher in rapid growth. The company’s dicamba production capacity is the world’s first. The downstream demand resumes growth and the company takes the lead in benefiting. For every 1,000 yuan increase in dicamba price, the company’s after-tax performance will increase by 2125 million. In recent years, the relationship between supply and demand has improved.The concentration of backward production capacity in the clearing industry has increased, and the price center and profit center have slowly moved upwards. The company has a glyphosate production capacity of 35,000 tons. Each increase of 1,000 yuan in price increases the after-tax performance by 29.75 million yuan.
Under the background of the synergy between the two industries, Yangnong is expected to rely on the Sinochem platform to go global.
China is the world’s largest pesticide raw material production base and pesticide raw material exporter, and Yangnong Chemical is the leader of the integrated industrial chain that stands out. Sinochem Pesticide will cooperate with Syngenta of China Chemical Industry andADAMA jointly builds the world’s leading agrochemical platform. As the sole listing platform of Sinochem, Yangnong will prioritize the resources of Sinochem’s excellent agrochemical industry. It will fully play the role of the SAS alliance under the synergy between the two industriesThe specialties of each company form an integrated industrial alliance from research and development to sales. Yangnong promotes relying on the Sinochem platform to become the world’s leading pesticide research and development and production enterprise.
Profit forecast and investment rating: The company is a leader in domestic park integration + industrial chain integration. Youjia Phase III and Phase IV projects continue to grow rapidly.
Maintaining the profit forecast for 2019-2021, the company is expected to return to its mother net profit for 2019-2021.
10,000 yuan, EPS 3.
84 yuan, the current market value corresponding to PE is 16X, 14X, 13X.
Maintain “Buy” rating.
Risk reminders: 1) The progress of the new project is not up to expectations; 2) The prices of major products have fallen