Pesticide industry boom continues to pick up

In 2016, listed companies in the pesticide industry achieved operating income of 67.
488 billion yuan, a year-on-year increase of 10.
2% (a growth rate of -0.
1% in 2015); realized a net profit of 3.
006 billion yuan, a year-on-year decrease of 13.
6% (-22.
4% in 2015)
.
Among them, in the fourth quarter, the business achieved 18.
06 billion yuan, a year-on-year increase of 22.
3%; net profit was 530 million yuan, a year-on-year decrease of 20.
3%
.
The pesticide industry has experienced a downturn in the past three years.
Since the second half of 2016, the economy has recovered, downstream demand has gradually recovered, the scale of product production and sales has expanded, and the operating income has increased significantly in the fourth quarter.
However, the price of pesticide products in the first half of the year was generally weak, and the second half of the year was particularly It is the fourth quarter that raw materials have increased significantly.
Although the prices of pesticide products have also increased significantly, listed companies in the pesticide industry are subject to some long-term cooperation orders, and the increase in product prices has been relatively lagging.
The annual net profit has declined year-on-year, but the decline in the second half of the year has been significantly reduced.
Narrow
.
In the first quarter of 2017, listed companies in the pesticide industry achieved operating income of 20.
831 billion yuan, a year-on-year increase of 34.
4%; realized net profit of 1.
52 billion yuan, a year-on-year increase of 64.
1%.
Operating income, operating profit, and net profit growth were the highest levels in recent years
.
Mainly benefited from the continued recovery of the industry’s prosperity, the continued improvement of the supply and demand structure, the increase in product sales of listed pesticide companies, and the rise in product prices to varying degrees
.
At the end of the first quarter, the total assets of listed companies in the pesticide industry reached 131.
72 billion yuan.
With the overall loosening of funds and the promotion of corporate deleveraging, the industry’s asset-liability ratio dropped rapidly to 47.
2% in the fourth quarter of 2015.
Although it rose slightly to 48.
2% in 2016, Still at a low level since 2012, the debt-to-asset ratio dropped slightly to 47.
2% at the end of the first quarter of 2017
.
At the end of the first quarter of 2017, the construction in progress of listed companies in the pesticide industry was 6.
965 billion yuan, a year-on-year increase of 7.
4%
.
After the Spring Festival, companies began to step up production and stocking for the upcoming spring plowing season.
Therefore, the first quarter is a period when seasonal corporate inventories are relatively high and net operating cash flows are low
.
At the end of the first quarter of 2017, the inventory scale of listed companies in the pesticide industry was 11.
839 billion yuan, a year-on-year increase of 5.
4%
.
The inventory turnover days were 62.
87 days, a year-on-year and month-on-month decrease of 21.
2 and 12.
5 days respectively
.
In the first quarter of 2017, the net operating cash flow of listed companies in the pesticide industry was 727 million yuan, a year-on-year decrease of 21.
5%
.