Limin (002734) Company In-depth Research Report: Leading Fungicide Industry Mergers and Acquisitions of Weiyuan’s Rich Product Layout

Limin shares: the leading domestic fungicide fungicide industry with stable growth. The company is a leading company in the domestic fungicide industry. Its main products are fungicide fungicide, chlorothalonil, cream urea cyanide, aluminum triethoxylate, molten moldAmine sets up domestic industry leader.

The company’s performance is improving, with operating income from 8 in 2015.

3.5 billion to 15 in 2018.

19 trillion, with a compound annual growth rate of 21.

83%, net 佛山桑拿网 profit attributable to mothers since 2015 was 0.

680,000 yuan increased to 2 in 2018.

0.6 billion, with a compound annual growth rate of 44.

39%.

The company released the 2019 semi-annual performance forecast, and the net profit attributable to the parent is 1.

96-2.

0.6 million yuan, a 90% increase in ten years?
100%.

The main products are booming. New projects have helped the company’s continuous growth. The company has entered the capacity release period since 2018. According to the company’s 2018 report, the dominant product, mancozeb, expanded its production capacity by 1 at the end of 2018 to reach the 4 index. It currently ranks first in the country in market shareFirst, the world’s second, long-term profit is stable and good; chlorothalonil production expansion in the fourth quarter of 2018 reached the target of 3, since 2018 the price of chlorothalonil has continued to rise, Xinhe Chemical has brought generous investment income to the company.
In addition, according to the 2018 annual report, new projects such as benziconazole, pyraclostrobin, water-based environmentally-friendly formulations, and stone sulfur mixtures are progressing normally, helping the company to continue to grow in the next few years.

Cash acquisition of Weiyuan Biochemical, layout of avermectin, glufosinate hot products In June 2019, the company announced that it has completed the asset delivery of Weiyuan Biochemical, and currently holds a total of 71 equity shares in Weiyuan Asset Group.

3%.

Weiyuan Biochemical has advantageous varieties of avermectin and glufosinate. Inner Mongolia Xinweiyuan has advantages in resources such as energy and land. After the acquisition of Weiyuan, the company has enriched its product structure and created synergies in procurement, technology, and channels.Effect.

Profit forecast and investment recommendations are based on the release of production capacity of the company’s projects under construction, continued sales growth, and the assumption that the product price and profitability are stable and stable. Considering that the company completed the merger and acquisition of Weiyuan Assets in June 2019, it is assumed to be consolidated for half a year.We expect the company’s EPS to be 1 in 2019-2021.

42 yuan, 1.

81 yuan, 2.

04 yuan, corresponding to the current expected market surplus of 10.

6 times, 8.

3 times, 7.

4 times, the expected EPS for 2019 is 1.

60 yuan, 12 times the average PE value of comparable listed companies in 2019, and 12 times PE conversion for the company’s 2019 pro forma earnings, the corresponding company’s reasonable value is 19.

2 yuan / share, covering for the first time, give “Buy” rating.

Risks indicate that the project under construction is not up to expectations; changes in the prices of major raw materials; major environmental protection and safety production accidents; changes in supply and demand conditions have caused changes in the prices of products such as mancozeb and chlorothalonil.