Nupuxin (002215) Semi-annual Report Comment: Revenue Expectation Expects Heavy Growth in Planting Business

Nupuxin (002215) Semi-annual Report Comment: Revenue Expectation Expects Heavy Growth in Planting Business
Performance in line with expectations The company issued a 19-year interim report and achieved revenue 24 in 18 years.53 ppm, an increase of 4 per year.38%, net profit attributable to mother 2.69 ppm, a decrease of 5 per year.65%, deducting non-net profit 2.46 ppm, a 10-year increase2.51%, EPS0.3 yuan.Performance is in line with expectations. Revenue increased slightly, strengthening distributors’ control of the company’s formulation business revenue13.67 ppm, 10-year average4.67%, mainly due to the sluggish global demand for pesticides, prices fell.According to the statistics of the Pesticide Association, the pesticide price index CAPI in May was 98.22, down 5 from the beginning.92 points.Consolidated distributor income10.$ 7.7 billion increased by 17.9%, consolidated net profit of 11.88 million yuan, every 23.44%; there are 54 controlling distributors, 41 of which are consolidated, and 77 participating distributors. The decrease in the number of shares is mainly due to the company’s strengthening of the management of participating distributors, taking the initiative to overcome the disadvantages, and shifting from quantity to quality.The company’s operating cash flow improved significantly after strengthening dealer control, with a net turnover in the first half of 19 1.9.6 billion, a decrease of 4.2.9 billion. Distributors’ net profit decreased, and we expect that short-term expenses will increase mainly due to the invasion of special crops in the early stages and the time required.Profitability remained stable with a gross profit margin of 28 in the first half.75% fell slightly by 1 every week.2PCT, the period rate is also reduced by 1.2PCT, the decrease in net profit was mainly due to a decrease in investment income exceeding 52.4 million.The overall operation of the company is stable. Pesticide management is becoming stricter, and the expansion of the formulation leader is expected to enhance the company’s leadership in the pesticide formulation industry in China. Last year, its revenue was close to the sum of the second and third places, and its market share was only 4% (Zhuochuang Information, Agricultural Resources Market Network).The decentralization of the industry is mainly due to the lowest industry supervision. The new version of the Pesticide Management Regulations was officially implemented in June 17th. The formulation market will be gradually standardized. The impact of environmental protection policies on the original medicines will also accelerate the licensing. With reference to mature foreign markets, we believe that Nuoxin has a market shareImprove significantly. The offline advantage is obvious, and it is worth looking forward to the cultivation of characteristic crops. The company focuses on high-value characteristic crop industrial chain operations, adopts a new model of agricultural science and technology industrial park development of “company + farmers + partners”, and operates the entire industrial chain.The company’s own brand of red heart dragon fruit has laid out more than 7,000 acres. It has established joint ventures with Baiguoyuan, Tiandiren and other companies to gather the superior resources of all parties to create a pathway from breeding and seedlings, planting systems, channel sales and brands to create first-classDragon fruit single crop industry chain. Earnings forecast and investment recommendations are affected by the downturn in weather and pesticide demand, and the company’s EPS forecasts for 2019-2021 are reduced to 0 respectively.36/0.45/0.59 yuan (previous value was 0.45/0.58/0.69 yuan) The current sustainable corresponding 19-19-21 PE is 17.8X, 14.2X, 10.8 times.The company is a leader in the pesticide preparation industry. The company’s market share will be gradually increased by strengthening supervision. The company will change its 杭州养生会所 comprehensive agricultural services and cooperate with companies such as Baiguoyuan. Special crops are expected to grow next year.Give 19 times 22 times PE, target price 7.92 yuan, maintain BUY rating. Risk reminders: product prices go down; the progress of new projects in production is not up to expectations; production safety risks;