Limin shares (002734): Weiyuan formally consolidated 19 years of high-growth conversion

Limin shares (002734): “Weiyuan” formally consolidated 19 years of high-growth conversion

Incident company released the 2019 Interim Report: the number of reports, the company achieved total revenue of 10.

880,000 yuan, +52 a year.

65%; realized attributable net profit1.

99 ‰, +92 for ten years.

98%; net profit after deduction 1

89 ppm, +89 a year.

29%; basic profit return is 0.

7 yuan.

Actual Performance Completion and Air Force Performance Preview1.


The 06 trillion segments coincide.

The company expects the net profit attributable to the parent company to be 2 from January to September.

3 billion interval, ten years + 80%?

A brief comment on the official consolidation of the “Weiyuan” asset group, the growth of income from insecticidal and herbicidal products is increasing., Further enrich the categories of pesticides and herbicides.

The performance of the underlying asset group promises that the net profit in 2019, 2020 and 2021 will not be less than 100 million, 1.

100 million and 1.


At the end of May 2019, the target asset group officially completed the consolidation, resulting in a significant increase in revenue for some products.

Reporting on intermediates, the company achieved fungicide revenue6.

180,000 yuan (ten years +7.

25%), gross profit margin 30.

94% (decade +0.

8pct); Achieve pesticide revenue2.

6.8 billion (+430.

8%), gross margin of 23.

83% (year -3.

21 points); achieve herbicide 1.

4.6 billion yuan (+84 per year).

88%), gross margin of 16.

37% (one year -2.

79 points).

The quantity and price of chlorothalonil rose, the investment income increased by 145% of the reported number. The price of chlorothalonil continued to be high, and the price has remained at 5 since 19 years ago.

At a high level of 50,000 yuan / ton, the product price slightly shifted after entering the third quarter.

The average price in the first half of 19 was 5.

5 million / ton, ten years + 10%.
In addition, a share of chlorothalonil that was put into production in the fourth quarter of 18 increased the production capacity, and the company ‘s equity subsidiary “Jiangsu Xinhe” increased its profit significantly against the background of chlorothalonil volume and price rising.

Reporting on the baseline, “Jiangsu Xinhe” achieved net profit2.

6.8 billion, previously + 194%.
Investment income of the company’s consolidated statements1.

04 trillion, previously + 145%, has become the main driving force for performance improvement.

“Hebei Shuangji” increased the volume of mancozeb and replaced it with manganese zinc. The “Hebei Shuangji” 1 destination under construction project was completed at the end of 18, and it is expected to contribute an increase in 2019.

In terms of prices, the average price of mancozeb in the first half of 2019 was 20,930 yuan / ton, with an interval of -10.


During the reporting period, the company’s manganese and zinc products have been replenished by volume, and the registration of “Brazilian” products in overseas consumer markets has continued to advance. Subsequently, orders in the Brazilian market can grow.

The related expenses brought about by the “Weiyuan” consolidation increased, and the expense rate as a whole maintained a stable reported growth rate. The company incurred sales expenses of 50.89 million yuan, at least +35.

51%, sales expense ratio 4.

68%; incurred management expenses of 71.2 million yuan, +36 throughout the year.

24%, the management expense 深圳桑拿网 ratio is 9.

26%; incurred financial expenses of 18.53 million yuan, +24 a year.

44%, financial expense ratio 1.


Expand international market development efforts and speed up product registration.

The report initially had 98 newly authorized registrations and 8 autonomous registrations, 7 newly authorized registrations, and 12 renewal registrations.

The newly launched authorized registration areas are mainly located in Southeast Asia, Africa and Central and South America.

The autonomous registration areas are developing countries, Brazil and the European Union.

In terms of preparations, continue to enrich product categories and extend product lines. In the first half of the year, five new products were applied, registration certificates were extended for six, and application products were expanded to two 佛山桑拿网 and approved.

Projects such as anisole and water-based preparations continue to advance. The company’s annual production of 500 tons of anisole-conazole is expected to be completed in the fourth quarter of 2019. At the same time, the design of the 10,000-ton water-based preparations project has started.The installation and commissioning of the Daisen series DF project with an annual output of 10,000 tons went smoothly. The joint-stock company Xinhe Company started the construction of the fourth chlorothalonil production line in the first half of the year.The mycophenolate project is expected to be put into production in the next 2020 and 2021.

The commissioning of new projects will continue to strengthen the company’s continued growth momentum.

Sustained growth momentum is sufficient. In 19 years, high growth is expected to continue. The company’s main products are mancozeb and chlorothalonil to supplement more capacity distribution. At the same time, there is room for growth in production and sales growth in the same time.The in-progress projects such as etoxystrobin are about to be put into production, and the superimposition of “Weiyuan” will bring considerable profit increase. The company’s 19-year high growth is highly certain.

We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 4 respectively.


1 and 6 megabytes, corresponding to PE, 10, 9 and 7 times, respectively, maintaining the “buy” level.