The price hike wave is here! This sector surges! 20 fertilizer and pesticide stocks show improved performance

Recently, the domestic fertilizer market has shown a general upward trend, with prices of major varieties rising collectively.

Domestic Fertilizer Market Shows a General Rise

On February 24, the A-share fertilizer and pesticide sector collectively gained, with multiple stocks such as Liugong Chemical, Meibang Co., Ltd., and Yuntu Holdings hitting the daily limit. ChuanJinNuo surged by 13.6%.

In terms of news, recently, the domestic fertilizer market has shown a broad increase, with prices of main varieties rising across the board.

According to data from the National Bureau of Statistics, as of February 10, the market price of urea (small granules) was 1,783.8 yuan per ton, up 3.25% from the end of 2025 and 5.24% from the same period last year; the market price of potassium sulfate compound fertilizer was 3,458.9 yuan per ton, up 16.9% year-on-year. Additionally, according to Wind data, on February 24, the market price of ammonium phosphate (55% powder) was 3,850 yuan per ton, a 16.67% increase year-on-year.

Policy signals are also positive. On February 5, the National Development and Reform Commission issued a notice on ensuring fertilizer supply and stabilizing prices for spring planting in 2026 and the whole year, encouraging domestic sulfur to be prioritized for direct supply to domestic phosphate fertilizer producers; phosphate fertilizer producers will actively supply domestically produced phosphate fertilizers to the market.

Recently, the Central No. 1 Document, “Opinions of the Central Committee of the Communist Party of China and the State Council on Solidly Promoting Rural Revitalization with Agricultural and Rural Modernization as the Anchor,” was officially released. The grain output target has been raised from “ensuring over 1.3 trillion jin” in 2024 to “stably around 1.4 trillion jin” in 2026.

Pacific Securities believes that the increase in grain output targets indicates that, under the background of climate fluctuations and pest and disease pressures, the fertilizer application per unit area may rigidly increase, creating a long-term trend of “total stable or slightly increased amount, with optimized usage structure” for fertilizers, especially nitrogen, phosphorus, and potassium fertilizers. The 2026 No. 1 Document further emphasizes “quality and efficiency improvement,” requiring the achievement of higher quality and benefits per unit output through high-efficiency fertilizers, new formulations, biopesticides, and smart application technologies, which will promote the adoption of high-efficiency fertilizers, pesticides, and plant protection technologies.

In terms of pesticides, according to a press release on the official website of the U.S. White House on February 18, President Trump signed an executive order invoking the Defense Production Act to protect the domestic supply of phosphorus and glyphosate herbicides. Glyphosate is the world’s largest pesticide, with North and South America being the main demand regions for grain production.

20 Fertilizer and Pesticide Stocks Show Good Performance

According to Securities Times and Data Treasure, there are 63 concept stocks in the fertilizer and pesticide sector of the A-share market. Of these, 35 have released 2025 performance forecasts or quick reports, with 13 expected to see year-on-year growth in net profit attributable to shareholders, and 7 expected to turn profitable from losses.

Among the stocks with the highest expected increase in net profit, Liming Shares is the top. The company’s performance forecast shows an expected net profit attributable to shareholders of 465 million to 500 million yuan, a significant increase of 471.55% to 514.57% year-on-year, potentially reaching a new high since listing. The company stated on investor interaction platforms that it currently holds 328 various pesticide certificates, including 50 registration certificates for raw drugs and 278 for formulations, covering fungicides, insecticides, herbicides, soil conditioners, and seed treatments.

Among stocks expected to turn profitable, Huabang Health expects the highest lower limit for net profit, with an expected net profit attributable to shareholders of 660 million to 730 million yuan, turning around from a loss of 299 million yuan. The company said that the agrochemical new materials sector is experiencing a partial recovery, and it is actively expanding markets, strengthening refined management, reducing costs, and improving overall performance.

Since the beginning of the year, stocks with good performance have attracted institutional attention. Data shows that five concept stocks with performance growth or turnaround since the start of the year have been surveyed by 10 or more institutions. Runfeng Shares, Yanhua Shares, and Lianhua Technology have been surveyed by 97, 25, and 21 institutions respectively.

During the surveys, Runfeng Shares stated that the strong growth trend of China’s formulation product exports is expected to continue into 2026 and the coming years, as high-quality domestic products gain recognition and acceptance globally.

(Source: Securities Times)