Hailier (603639): New categories continue to develop and export forces drive growth

Hailier (603639): New categories continue to develop and export forces drive growth

Hailier is a faucet of chronic neonicotinoid insecticides. It has the advantages of integration of intermediates, original drugs and preparations. The gross profit margin is stable above 35%. The continuous transformation of new varieties in the future has continuous growth. The logic is as follows: CoreViewpoint The growth brought by the development of excellent single products: the company takes the development of excellent original drug varieties as the core, the overseas market as an important growth pole, and the overall strategy of drug discovery and market development is becoming increasingly clear.

主打的新烟碱杀虫剂吡虫啉和噻虫嗪是15年全球排名第2、3位的杀虫剂品种;吡唑醚菌酯和丙硫菌唑也是全球排名第2、3位 位的杀菌Agent variety.

Among them, the current main product, imidacloprid, and the insecticidal phosphate are firm in price due to environmental protection.

New products such as pyraclostrobin and prothiostrobin are in the promotion period in China, but they are more mature in overseas markets, especially in Southeast Asia and South America markets where the company mainly targets.

The company’s overseas channel layout has continued to make breakthroughs and has become an important growth pole of performance.

Intermediate-original drug-preparation integration is complete: dichloride is the key intermediate of imidacloprid and phosphate wormworm.

Due to the pollution of dichloride production, domestic supply is also relatively concentrated.

Driven by environmental storms over the past 16 years, the supply of dichloride has been tight, and prices have risen rapidly. It has also pushed downstream small businesses to clear up, imidacloprid, and chromatophores, and the company’s integration has been completely self-sufficient to obtain excess returns.The synergistic and complementary layout can also make the overall gross profit level very stable.

In addition, CCMP, as a downstream product of key intermediates, can serve as an extended basis for the company’s 杭州夜生活网 new original drug products in the future.

The company’s continuous R & D investment also reserves momentum for future growth.

Financial Forecast and Investment Recommendations We forecast the company’s EPS for 18-20 years will be 2.

40, 2.

98, 3.

58 yuan, based on a 19-year price-earnings ratio of 13 times for comparable companies, giving a target price of 38.

74 yuan and overweight grade.

Risks suggest that new products are put into production and promoted less than expected: sudden changes in exchange rate growth; fluctuations in product and raw material prices.