Yangnong Chemical (600486): Acquired Sinochem International’s core pesticide asset layout and researched the integrated production and sales industry chain

Recent situation of the company Yangnong Chemical announced a major asset acquisition supplement, the company plans to use cash9.

US $ 1.3 billion to acquire 100% equity of Sinochem Crops and 100% equity of Agricultural Research Corporation. At the same time, it is necessary to pay Sinochem International’s responding dividend to the original Sinochem crops3.

300 million.

Comment on this acquisition price is relatively reasonable, performance commitment locks 2019?
Total deducted non-attributed net profit in 2021 2.

9.7 billion.

The total net assets of Sinochem Crops and Agricultural Research Corporation attributable to mothers in 20184.

980,000 yuan, the total net profit attributable to mother 0.

89 ppm, the transaction price corresponding to 2018 target companies P / B and P / E are 1 respectively.

83x and 10.

2x; 杭州夜网论坛 corresponding to 2019?
2021 Annual Performance Commitment 9.

2 times.

The production and sales of Sinopec’s main military primary medicines and preparations, 2018 revenue and net profit attributable to mothers 33/1.

1.6 billion.

In 2018, Sinochem’s crop preparation distribution, original drug sales and trading business revenue were 15 respectively.

3/8.

4/9.

300 million, the income ratio is 46.

4% / 25.

5% / 28.

1%.

Overseas sales revenue 23.

200 million, accounting for 70%.

The company achieved gross profit and net profit in 20181.

16 ppm, with gross and net profit margins of 21 respectively.

7% / 3.

53%.

Agricultural research company is a domestic scale competitive pesticide professional research institution.

Agricultural Research Company is a complete set of pesticide research and development 合肥夜网 units for the design and synthesis of new military compounds, development of production processes, processing of pesticide formulations, and biological activity screening.Become the leading product in the domestic market.

In 2018, the agricultural research company realized a revenue of 35.79 million yuan, of which 28.84 million yuan was the income from the transfer of technology use rights and 2.16 million yuan in technical services from Shenyang Science and Technology Innovation. In 2018, the agricultural research company realized a net profit of 27.14 million yuan.

After the acquisition, Yangnong Chemical will form an integrated industrial chain of research, production and sales.

After the completion of the acquisition, Yangnong Chemical will integrate the core assets of Sinochem International’s pesticide business to form an integrated industrial chain of research, production and sales. Through effective integration of R & D resources and sales networks and the complementary advantages of products and customers, it is expected to fullyGive play to the synergy effect, expand market share, and further increase the domestic and foreign visibility and influence of Yangnong Chemical.

It is estimated that we will not consider mergers and acquisitions for the time being. We maintain our 19/20 profit forecast3.

49/4.

07 yuan / share.

The company currently meets the corresponding 2019/20 P / E ratio of 14.

5/12.
4x, maintain target price of 75 yuan, corresponding to 21 in 2019/20.

5/18.
4x price-earnings ratio and 48.

7% growth space, maintaining the recommended level.

The integration of risk assets was lower than expected, the prosperity of the pyrethroid industry changed, and the demand for dicamba was lower than expected.