Limin Shares (002734) Annual Report Comments: Continuously High Performance and Weiyuan Create Multi-Variety Agrochemical Platform

Limin Shares (002734) Annual Report Comments: Continuously High Performance and Weiyuan Create Multi-Variety Agrochemical Platform

Event: The company released its 2018 annual report: operating income in 201815.

1.9 billion (+6.

73%), net profit attributable to mother 2.

0.6 million yuan (+50.

09%), EPS0.

74 yuan, proposed to send 10 to 3.

5 yuan.

The company expects to realize a net profit attributable to mothers of 76.31-8511 million in the first quarter of 2019, an annual increase of 30% -45%.

The new production capacity was released smoothly, the industry boom was postponed, and the company’s performance grew rapidly. The company was one of the largest manufacturers of forest fungicides. In 2018, the main product of forest fungicides, the price of manganese zinc remained at 2.

0-2.

The 30,000 / ton shock, the company continued to expand the international market development, and initially launched 147 authorized registrations, mainly in Southeast Asia, the Middle East, Central and South America, and the increase in product sales promoted the company’s performance growth.

Xinhe Co., Ltd., a joint-stock subsidiary, added 1 ton / year of chlorothalonil production capacity in 2018, and the market price of chlorothalonil increased from approximately 40,000 / ton at the beginning of 2018 to 5.

50,000 / ton, the volume and price of products rose, the company’s performance was in line with expectations.

The merger and acquisition of Weiyuan is progressing smoothly, and the endogenous extension is simultaneously improving the industrial layout. The company started an annual output of 500 tons of anisole-conazole in 夜来香体验网 the end of 2018. It is expected to be completed and put into operation in the second half of 2019.

The annual production of the first-generation Daisen series DF product project of the subsidiary Hebei Shuangji will be constructed in 2018, and it is expected to be completed and put into operation in the first half of 2019.

The company also plans future projects such as pyraclostrobin, new aluminum triethoxylate, and strong endogenous growth.

On March 29, 2019, the company’s shareholders meeting passed the acquisition of Weiyuan Biochemical Preplan, the company intends to use 4.

800 million transferees of Weiyuan Biochemical and other three companies 60% equity, the target company’s performance commitment for 2019-2021 is 1 respectively.

0, 1.

1.

200000000.

The acquisition of Weiyuan will add heavy-weight pesticide 重庆耍耍网 products such as avermectin and glufosinate to the company. At the same time, the company owns a nationwide marketing network and opens the entire industrial chain.

Cooperate with Weiyuan to create a multi-variety agrochemical platform and maintain the “strongly recommended” rating. The company’s main fungicides have successfully opened the South American market; aluminum triethoxylate and frost urea cyanide are underwritten by major customers, and the production and sales are booming.The chlorothalonil industry is highly prosperous and has strong profitability; industry consolidation has helped the company’s performance to grow.

Without considering Weiyuan’s consolidation, we estimate the company’s net profit attributable to its mother to be 2 in 2019-2021.

60/3.

12/3.

490,000 yuan, the current sustainable PE is 18.

4/15.

4/13.

8 times, risk reminder to maintain “strongly recommended” rating: fewer orders, lower product prices, and the company’s environmental protection ability is less than expected