Domestic pesticide innovations enter the achievement realization phase, with China National Agricultural Technology and Xin'an Shares both hitting the daily limit up.

On April 7, the pesticide concept continued to strengthen. China Nonglian United (003042.SZ) and Xin’an Shares (600596.SH) both hit the daily limit. Guangkang Biochemical (300804.SZ) rose by more than 11%. Jiangshan Shares (600389.SH), Runfeng Shares (301035.SZ), Yangnong Chemical (600486.SH), Changqing Shares (002391.SZ), ADAMA A (000553.SZ) and others also followed suit.

On the news front, prices of pesticide technical-grade products have been moving up, and profitability for glyphosate and others has improved. In recent times, the upward trend in pesticide technical-grade prices has been evident. On the cost side, raw material prices have risen, while North American and domestic spring-plowing pesticide application peak seasons are approaching, driving a continued improvement in the sector’s business conditions.

According to iFinD data, as of April 3, the pesticide technical-grade price index was 78.92, up 11.2% from the beginning of 2026. By product category, the herbicide technical-grade price index was 87.86, up 13.1% from the beginning of 2026; the insecticide technical-grade price index was 72.80, up 15.6% from the beginning of 2026; and the fungicide technical-grade price index was 73.16, up 4.5% from the beginning of 2026. By specific products, taking glyphosate as an example: affected by continuously rising upstream raw material prices such as glycine and yellow phosphorus, as of April 3, according to iFinD data, glyphosate (95%) technical-grade had increased to 31.8k yuan/ton, up 28.3% from the beginning of 2026. Meanwhile, the rise in glyphosate prices fully covered the increase in raw material costs, with a significant improvement at the gross profit side. According to Baichuan Yingfu data, as of April 3, the domestic industry average gross profit for glyphosate was about 2,501 yuan/ton, representing a significant improvement compared with the loss level at the start of March.

Against the backdrop of geopolitical disruptions, the strategic significance of global food security has become even more prominent, boosting demand for agricultural input products. In 2026, China’s “Government Work Report” clearly stated “grasping grain production without letting up,” requiring efforts to enhance supply保障 capacity for grain, energy resources, and other areas. During the “Fifteenth Five-Year Plan (15th-Five-Year)” period, comprehensive grain production capacity is expected to reach around 1.45 trillion jin, and policies such as stabilizing grain and cooking-oil production, deeply implementing the seed-industry revitalization action, and coordinating production, storage, and reserve operations are emphasized to help keep prices of grain and other important agricultural products at reasonable levels. At the international level, on February 18, U.S. President Trump signed an executive order that, under the “Defense Production Act,” officially listed elemental phosphorus and glyphosate-type herbicides in the list of defense critical materials, closely tying farmland herbicides to the defense industry, endowing phosphorus resources with three strategic attributes—agriculture, defense, and technology. Under geopolitical conflict disruptions, more attention has been paid to the security and stability of the global pesticide supply chain. As a major global supplier of pesticide technical-grade products, Chinese companies are expected to benefit from structural growth in demand.

Everbright Securities stated that domestically created pesticide products have entered the stage of achievement realization, bringing companies considerable incremental profit. In recent years, domestic pesticide companies have continued to increase R&D investment in the pesticide creation sector, and new products have gradually entered commercialization and scaling-up phases. Compared with traditional generic products, created pesticides have higher technical barriers and added value, which helps improve companies’ gross margin levels and optimize their profitability structure. As some created products gain recognition in overseas markets, combined with the competitive advantages brought by protected independent intellectual property rights, relevant companies are expected to release profit elasticity during the industry’s recovery.