news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

recently, while the market is hot on popular concepts such as mergers and acquisitions, restructuring, and state-owned enterprise reform, some relatively niche tracks have also experienced an upward trend, such as agricultural chemicals and glyphosate.

as for related concept stocks, lin yuan investment, which rarely appears in public, has also set its sights on one of the targets. in addition to belonging to the agricultural chemical products track, this target is also related to "mouth", which is also the theme that lin yuan has focused on for a long time.

linyuan investments showed up to investigate nopoxin

the company is "all about the mouth"

for a long time, there were few cases of lin yuan investment publicly appearing in research on listed companies. however, just recently, lin yuan investment appeared on the research list of a listed company.

on august 29, 2024, lin yuan investment’s name appeared in an institutional research activity of nopco (see figure 1).

it was also observed that on august 29, in addition to linyuan investment, many other institutions conducted research on nopco, such as centennial insurance asset management, shibei investment, kaifeng investment, etc. further, in addition to august, nopco also conducted multiple research activities in february, april, may, july, etc., in which many institutions also participated.

statistics show that in the past year, lin yuan investment has only appeared in five research investigations, involving three companies. in addition to the above-mentioned nopoxin, there are also a grain and oil processing company, an online game and ai company.

as one of the few companies that lin yuan investment has recently researched, what are the “highlights” of nopco?from a fundamental perspective, nopoxin's business areas include pesticide formulation business, specialty fresh food consumption business, etc. according to the first half of 2024 financial report data, the company's pesticide formulation business and specialty fresh food consumption business accounted for more than 40% of its revenue.

for a long time, lin yuan has said that he would focus on investing in areas "related to the mouth". recently, lin yuan expressed the view that good assets are all related to the mouth. now there is a strategy - "invest in the mouth". assets related to the mouth are easier to correct. food has a shelf life and usually there is not a large backlog of inventory. the same is true for medicines. the automatic adjustment of enterprises or markets will be very fast.

nopoxin’s business operations are also “related to the mouth”, and the company’s specialty fresh food business is related to food.in this survey, the agency paid special attention to nopoxin's blueberry business. nopoxin said that the company's production area in the 2023/2024 production season is about 20,000 acres, and it is expected that the production area in the 2024/2025 production season will be close to 30,000 acres. at present, the company has signed contracts for about 44,000 acres of land and has been actively looking for new land resources.

the company's performance in the first half of the year has seen growth, and the blueberry business has made an "indispensable contribution". in the first half of this year, nopoxin achieved operating income of approximately 3.4 billion yuan, a year-on-year increase of 33.5%, and net profit of approximately 552 million yuan, a year-on-year increase of 63.48%. as for the reasons for the performance growth, the company stated that the blueberry business, the main product of the company's second growth curve, has entered the second year of mass production. the first half of the year was the main production cycle, and operating income and profits increased significantly year-on-year.

recently, nopoxin's stock price has rebounded against the market trend. for example, from august 26 to september 3, the stock price rose by nearly 20% in 7 trading days.

structural improvement in agricultural chemical product performance

net profit growth of many companies doubled

the industry track that nopoxin is involved in belongs to agrochemical products. further expanding it to the agrochemical products sector, affected by factors such as downstream market demand, the performance of the agrochemical products sector showed structural improvement and improvement in the first half of the year.

statistics of 58 agricultural chemical concept stocks show that 49 of them achieved profits in the first half of this year, accounting for more than 80%; 25 of them achieved performance growth, accounting for more than 40%.

from the perspective of individual stocks, yuntianhua, hualu hengsheng, and salt lake co., ltd. all achieved net profits of more than 2 billion yuan in their 2024 interim reports. xingfa group, yangnong chemical, and xinyangfeng all achieved net profits of more than 500 million yuan.

take yuntianhua as an example. according to its 2024 semi-annual report, the company achieved a net profit of 2.841 billion yuan in the first half of the year, a year-on-year increase of 6.10%. the company said that the performance growth was related to the stable profitability of major products such as fertilizers, polyoxymethylene, and calcium for feed. in the first half of this year, the company's sales of many products increased, such as compound (mixed) fertilizer sales increased by 43.28% year-on-year, and urea sales increased by 12.05% year-on-year. from the perspective of the secondary market, the company's stock price experienced a strong rebound from january to may this year, and from june to now, it has maintained a relatively high consolidation trend overall.

judging from the growth rate of interim performance, the net profits of many companies such as sichuan jinnuo, kingenta, liuguo chemical, and hongda holdings have doubled in the first half of the year.

taking hongda co., ltd. as an example, the company achieved operating income of 1.762 billion yuan in the first half of the year, a year-on-year increase of 21.12%; and achieved a net profit of 58.343 million yuan, turning losses into profits, a year-on-year increase of 187.7%.

the company's performance growth is related to the positive market. for example, in the phosphate industry, hongda shares said that the market was in short supply during the spring ploughing season, the company's compound fertilizer orders were sufficient, and the orders for phosphate series products increased significantly. due to the significant increase in sales of phosphate series products and the decrease in the cost of major raw materials, the operating performance increased to a certain extent.from the perspective of the secondary market, the company's stock price has experienced a volatile upward trend that is different from the market over a longer period of time. for example, since 2023, the company's stock price has doubled (see figure 2).

in addition to the above-mentioned companies, a number of agricultural chemical companies have achieved performance growth in the first half of this year, such as fubon group, hualu hengsheng, xingfa group, etc. (see attached table).

glyphosate in the agrochemicals segment

price increase mode activated

from the perspective of the agricultural chemical products industry, nopco also has a layout of glyphosate-related businesses. glyphosate is an organophosphorus herbicide, a bulk agricultural chemical product, and its price is cyclical.recently, some companies have raised the prices of glyphosate products. in addition, judging from the performance of the secondary market, the share prices of many glyphosate concept stocks have also rebounded recently.

xingfa group has recently raised prices. the company's main business is phosphorus chemical products. it recently stated that due to the recent continuous rise in bulk raw material prices, the production cost of glyphosate has risen sharply. the company has issued a price adjustment advance notice to customers and partners on september 1, deciding that from september 10, the company's supply of glyphosate technical and series of preparations will increase sales prices by 5% to 15%. from july 25 to september 3, the company's stock price rebounded from the bottom, with a cumulative increase of nearly 18% during the period.

some companies increased shipments as prices rose. hebang bio said that since the second quarter, the prices of the company's main products such as glyphosate have risen to varying degrees, and the gross profit margin of products in the second quarter has increased significantly. the company seized the opportunity of the market price rebound and increased shipments.

recently, some glyphosate concept stocks have experienced a trend that goes against the market, such as huabang health, whose main business is new agricultural chemical materials and pharmaceuticals. the main business of the company's holding subsidiaries and participating enterprises involves glyphosate. from late july to mid-august, the company's stock price rebounded against the market, with the highest increase exceeding 10%.

some other companies have started to expand production. jiangshan co., ltd. said in june this year that the company and wengfu (group) signed the "investment framework agreement on the new materials and electronic chemicals project in weng'an county". the two parties will give full play to their respective advantages and jointly build an integrated phosphorus chemical recycling industry chain. after the project is completed, it will add 100,000 tons of glyphosate per year and 100,000 tons of phosphorus flame retardants and related intermediates.

jiangshan shares' stock price has also seen a recent rebound against the market trend. for example, from august 21 to september 3, the company's stock price rose by more than 16% (see figure 3).