Yangnong Chemical (600486): The environmental impact assessment and approval of Youjia Phase III project is optimistic about the company’s medium and long-term growth prospects

Yangnong Chemical (600486): The environmental impact assessment and approval of Youjia Phase III project is optimistic about the company’s medium and long-term growth prospects

The company’s recent situation On November 22, the website of Nantong Administrative Examination and Approval Bureau announced the announcement of the decision on environmental impact assessment of the three-phase project including annual output of 10,825 tons of pyrethroids, a wholly-owned subsidiary of Yangnong Chemical Co., Ltd .-November 29, 2019.

Comments on the 深圳桑拿按摩 construction of the Youjia project will promote the company’s continued growth.

After the environmental impact assessment of the third phase of Youjia project is approved by the government, we expect the project construction to gradually accelerate.

According to the company announcement and EIA report, the third phase of the excellent project plans to build the company’s dominant varieties of 2500 tons of kefirate, 4,800 tons of cypermethrin products and 3,525 tons of other pyrethrins and intermediates, as well as high-efficiency herbicides, thienon and other herbicidesAnd fenoxy methoxazole, propiconazole and other bactericides, while the remaining 3,500 tons of methyl tintinate production capacity in the first phase of the project as a supporting set; the fourth phase of the project in Youjia plans to build bifenthrin, 武汉夜网论坛 santhrin, etc.For core product capacity, we expect the construction of the third and fourth phases of the project will help the company continue to grow.

Permethrin is expected to maintain high profitability and is optimistic about the prospects for dicamba in the long run.

At present, the price of kefir and bifenthrin is 27/30 million / ton, which is 23% / 29% lower than the same period last year.

With the initial resumption and expansion of production, we expect the price of pyrethroid to be under certain pressure, but the company’s integrated pyrethrin integrated industrial chain and the core customer prices are relatively stable. We expect the company’s pyrethrin products to maintain a high level of profitability.

Affected by Sino-US trade frictions, heavy rains in the US planting season, and delays in the promotion of Brazilian genetically modified crops, 1?
3Q19 wheat straw shrinkage situation has changed, but we are still optimistic about wheat straw shrinkage prospects, mainly due to reduced wheat straw shrinkage application defects, the United States wheat straw shrinkage-tolerant genetically modified crop planting area increase and we expect wheat straw-tolerant genetically modified soybeans to move to Brazil in 2021.

Acquiring Sinochem crops and agricultural research companies to lay out an integrated industrial chain.

The company has completed the acquisition of Sinochem Crops and Agricultural Research Corporation’s equity.

Thanks to the increase in prices of some pesticide products and the sales of patented products such as 9625 (acetazolamido) and 9080 (tetrachloropyramid), 1?
3Q19 consolidated performance exceeded market expectations.

We expect that the gradual integration with the acquisition target assets will help promote the formation of an integrated industrial chain of research, production and sales of the company, give full play to synergies, and further strengthen the company’s market competition and expand market share.

Estimates suggest that we maintain our 2019/20 profit forecast11.

86/14.

0 million.

The company currently meets the corresponding 2019/20 P / E ratio of 15.

1/12.

8 times, maintain target price of 75 yuan, corresponding to 30% growth space and 20/17 times 2019/20 P / E ratio, maintain outperform industry rating.

Risks The sales of dicamba were higher than expected, and the price of pyrethroids rose sharply.