Guohai Securities: Maintains "Buy" rating on LMGF, with significant year-on-year improvement in performance for the first half of the year

Guohai Securities research report pointed out that benefiting from the rise in product prices, LMGF's performance in the first half of 2025 has significantly improved year-on-year. This is mainly due to the year-on-year increase in sales volume and prices of the company's main products, the improvement in gross profit margin, and the increase in investment income from the performance of affiliated companies. The domestic market share of the company's leading product, Mancozeb, is approximately 70%-80%; the domestic market share of Abamectin is approximately 25%-35%; and the domestic market share of Methomyl is approximately 20%-30%. Additionally, the demand for Abamectin, Methomyl, and Mancozeb is strong, and the company is currently operating at full capacity with sufficient sales orders on hand. The second half of the year will enter the sales peak season in the South American market, and it is expected that the market demand for fungicide products Mancozeb and Bacillus will support continued growth. Furthermore, the company is accelerating the construction of its R&D platform, with the synthetic biology laboratory officially completed and put into use in October 2024, effectively enhancing strain performance, biosynthesis efficiency, enzyme catalytic ability, product purity, and production economics. Based on the improved market conditions for the company's core products Mancozeb, Bacillus, Abamectin, and Methomyl, the company's profit forecast has been adjusted, maintaining a "Buy" rating