03/26/2020 | 夜生活 | No Comments
Adoma A (000553): Relying on China’s leading non-patent pesticide leader
Saronda, the predecessor of the world’s leading non-proprietary pesticide giant, is an important domestic manufacturer of pesticide raw materials. It introduced related products acephate, and the production capacity of spermine ranked first in the country. In 2017, the company acquired Andamy, and becameThe world’s largest generic pesticide company.
The company achieved revenue of 256 in 2018.
2 trillion, an increase of 7 in ten years.
5%, achieving a net profit of 24.
0 million yuan, an increase of 55 in ten years.
In the future, based on the increase in the market share of generic pesticides and the completion of internal resource integration, the company is expected to benefit from the increase in the gross profit margin of its product portfolio and the rapid growth of internal business. We expect the company’s earnings per share from 2018 to 2020 to be 0.
85 yuan, for the first time, give “overweight” rating.
The demand for pesticides has steadily increased, and the expansion of the generic drug market has increased. In 2018, pesticide sales continued to recover weakly, and the initial global growth increased.
From 2% to 55.6 billion US dollars, since 2019, wheat and corn have maintained a bottom shock, and the overall strong oil price has been positive for agrochemical demand.
The supply side of the industry has undergone shuffling. After the merger and acquisition tide, the groups have become more differentiated and the competition between companies has increased.
The progress of research and development of patented drugs has gradually increased, and the current varieties have gradually exceeded expectations. The share of non-patented products has continued to grow. The market capacity in 2017 exceeded 40 billion US dollars, which is beneficial to the company’s non-patented drug companies.
The products provided by the company and the multiple advantages of the channel Adoma is the main component of the company. Its core competitiveness mainly includes: sinking channels through a rich product line and a global sales network to achieve a steady increase in product sales.The market has a total of 5 by 2010.
1% increase to 6 in 2018.
9%; replace low-end products by dating differentiated products with high gross profit margins to enhance profitability, and the combined gross profit margins from 27 in 2010.
5%南京桑拿论坛 to 33 in 2018.
3%; A large amount of expenditure is on registered pesticide registration certificates, and the number of registration certificates is the world’s leading (more than 5,000 in 2017). In the future, it will take longer to obtain registration certificates, the cost increase trend will be obvious, and the company’s competitive advantage will continue to increase.
China’s market potential has broken through, and investment projects have strengthened its advantages. China is the world’s third largest pesticide market. In 2017, it was about 6 billion US dollars, but the market concentration decreased.
Adoma entered the Chinese market in 2014, and its business has developed rapidly. This type of domestic products in 20182.
$ 7.5 billion, an annual increase of 7.
After the merger of the company and Adoma, the company gradually promoted the integration of the industrial chain. Through the fund-raising project, an operating network with a basic structure of “Jingzhou (original medicine)-Huaian (formulation)-Nanjing (development)” was laid out. It is expected to optimize its own supply after completionChain and give full play to the synergy effect.
And as the core pesticide platform of China’s chemical industry, it is also expected to gradually develop its strength in integrating the group and even the domestic agrochemical industry.
For the first coverage, we give an “overweight” rating. We estimate that the company’s net profit for 2019-2021 will be 14 respectively.
80,000 yuan, the corresponding EPS is 0.
RMB 85; combined with the comparable company’s estimated level (average 14 times PE in 2019) and the company’s subsequent performance growth, considering that the company’s amortization expenses affect about $ 600 million in net profit each year, and the company is a global non-patented pesticide leader, giving the company 201919-22 times PE, corresponding target price is 11.
98 yuan, corresponding to 1 in 2019 PB.
42 times, the first coverage is given an “overweight” rating.
Risk Warning: Downstream demand is not up to the expected risk, and raw material prices fluctuate greatly.