Huatai Securities: Intensive period of agricultural pesticide policies, leading companies may benefit

Huatai Securities stated that recently, the Ministry of Agriculture and Rural Affairs and others have issued policies such as "one certificate, one product", and we believe that the quality of pesticides and the market order of pesticides may be optimized. Currently, in China, some pesticide products with the same registration number are labeled with different trademarks when sold in the market. The "one certificate, one product" policy may prevent products produced by companies that borrow or lease certificates from being sold in the market. In the future, the number of pesticide brands may decrease, and formulation companies with more registration certificates are expected to enhance their competitiveness. Under the regulations that formulations should be labeled with the registration number of the active ingredients and the name of the manufacturing company, the importance of the quality of the active ingredients and compliance becomes more prominent, and the structure of active ingredients will undergo a process of natural selection.