Adoma A (000553): Short-term climate factors affect the company’s product sales and continue to be optimistic about the growth under the layout
Investment Highlights: Global leader in the field of generic crop protection products Adoma is a global leader in the field of generic crop protection products, mainly in the development, production and sales of generic crop protection products. The business network covers the world and is owned in 45 countries.60 subsidiaries, 4 R & D centers, 8 product and development registration centers, have significant competitive advantages.
Judging from historical data, the company’s revenue growth continues to outpace the industry growth, fully showing the better growth brought by the layout.
Based on the Chinese market and sustainable market differentiation to increase market share. China is the world’s third largest crop protection market and a market for growth and transformation. Its highly fragmented market and low penetration rate have huge implications for head companies.Market space.
Since joining the Sinochem platform, ADAMA has proposed to be based on China and Unicom’s world slogan, and continue to expand its product line advantage in China by providing differentiated product solutions. In the first quarter of 2019, the company’s own-brand preparation products were at the China levelSignificant growth, the increase reached two figures.
Continue to optimize the layout of the industrial chain and enhance the overall strength. In January 2019, ADAMA acquired Bonide of New York State. This transaction enables the company to have a distribution network covering the United States.
The acquisition of Anbang Dianhua was completed in March 2019. Anbang Dianhua’s main products are ethephon, pyrrolidone, thiazinone and chlor-alkali business, which has a backward integration advantage.
In addition, ADAMA also plans to acquire Huifeng’s agrochemical business, which is still in the net worth investigation stage. If the acquisition is successful, ADAMA’s comprehensive 深圳丝袜会所 strength will be greatly enhanced.
The continuation of climatic disasters in the United States and Australia in the second quarter is expected to continue to affect the company’s pesticide sales for a quarter. North America, Europe, Australia and other regions have been affected by extreme disaster climates, which greatly delayed the planting season and affected the application of crop protection products throughout the region.Demand for medicines has adversely affected the sales of the company’s preparation products.
In the second quarter of this year, the severity of the floods in the Midwestern United States and the emergency disaster in Australia continued. It is expected that the second or third quarter will affect the company’s pesticide sales or substitution.
Earnings forecast and rating are expected to be 0苏州夜网论坛 for the company from 2019 to 2021.
66 yuan, 0.
90 yuan, 0.
97 yuan, corresponding to the latest closing price of PE is 17 times, 13 times, 12 times, maintaining the “recommended” level.
Risks suggest continued global downturn in agricultural products; new projects fail to meet production expectations; acquisition of Huifeng agrochemical business fails to meet expectations