Increased profitability of pesticide companies

Drying equipment

China Drying Network News: "The company's sales in July have picked up, but no external growth is expected; sales figures for August have not yet been calculated, but the company's inventories have fallen rapidly, not including channel stocks." Internal staff told reporters.

Following the pests and diseases in the northeast and north China, the southern region has entered the critical period of occurrence and harm of pests and diseases in the middle and late rice since August.

According to the monitoring and reporting network of crop diseases and insect pests across the country, since the entrance into the Yunnan Province, the climate was extremely anomalous, and major pests such as “two migrations” of pests in mid-late rice were re-emerging, especially in 2005 and 2007 when the situation of rice planthoppers and large-scale outbreaks were endangered. Very similar. As of August 24, a total of 260 million mu of land has occurred, an increase of nearly 50% year-on-year.

In the face of the grim situation of “grazing the crops with insect population”, on August 27, the Ministry of Agriculture held a workshop on pest prevention and control of the middle and late rice in the province of Changsha, Hunan Province. The meeting requested that agricultural protection agencies at all levels should fully understand the current pests and diseases. Prevention and control will ensure the extreme importance of autumn harvest, and effectively promote the activities of “fighting for 60 days, harvesting grain with insects and ensuring autumn harvest”.

Up to now, the semi-annual report of the relevant listed company has basically been completed. As a whole, due to the different sales seasons of raw material drug manufacturers and drug manufacturers, the industry's demand is picking up, and the performance of listed companies in different industry chains is growing at different times. The longer the industry is, the stronger the profitability is.

Yangnong Chemical Company sources told reporters that from January to June is the peak season for the production of raw pharmaceutical companies, and from March to September is the peak season for the preparation of end-to-end sales companies. If large-scale pests and diseases are to be unleashed, it will be too late for pharmaceutical companies to buy original drugs to produce and sell.

China's largest and most comprehensive pesticide formulation company, Noppsin, also told reporters that due to the variety, dispersion, complexity, and variability of preparation requirements, and dealer sales channels require fast response delivery dates, stocks must be stocked. in stock.

According to the semiannual report of Nopps, the company’s inventory in the first half of the year was reduced by 214 million yuan. As of the inventory details as of June 30, the book balance of inventory goods and raw materials accounted for the largest proportion, which was RMB 116 million and RMB 85.83 million, respectively.

"The supply of products is no problem. The company's inventories are declining rapidly." Insider believes that without obtaining sales data, it is not good to make specific predictions on the company's performance.

From the original drug to the preparation of Changqing shares in the first half of the performance was significantly more brilliant. In the first half of the year, the company achieved revenue of 655 million yuan, a year-on-year increase of 32.5%; and a net profit of 78 million yuan, a year-on-year increase of 23.4%. An analyst who has conducted on-the-spot investigations and is optimistic about Evergreen shares told reporters that as many as 19 new drug reserve projects will be put into operation to ensure the company's rapid development in the future.

In addition, the Southeast Asia region is also similar to China, where serious pests and diseases occur. The situation of pests in the second quarter stimulated the growth in the demand for pesticide-related species, especially pesticides, and the third quarter will also be the peak season for the use of pesticides. Related companies with comparative advantages in the export channels will benefit as a result.

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