Investment Value Analysis Report of Limin Co., Ltd. (002734.SZ)

Based on the comprehensive data collected, I will provide you with an in-depth analysis report on Limin Co., Ltd. (002734.SZ):

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According to public information [1][2], Li Ming, the actual controller of Limin Co., Ltd., cumulatively reduced his holdings of the company’s shares by

through block trades and centralized bidding from August 15 to October 22, 2025, accounting for of the company’s total share capital, with a cash-out amount of approximately . The average price of the share sell-off was approximately .

It is worth noting that this is not Li Ming’s first large-scale share sell-off:

• 2019
  : Li Ming reduced his holdings by 1.86% of the company’s shares, cashing out tens of millions of RMB [2]
• July 2025
  : A new share sell-off plan was disclosed, intending to reduce holdings by no more than 13.10 million shares (accounting for 3% of total share capital) [1]
• Shareholding After Sell-Off
  : Li Ming and his persons acting in concert (son Li Xinsheng, daughter Li Yuanyuan) still hold a total of approximately
  107.6 million shares
  , accounting for about 24.48% of the total share capital

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Time Node	Share Price	Increase from the Beginning of 2024
Beginning of 2024	Approximately RMB 5 per share	Benchmark
June 2025 (Highest)	Over RMB 24 per share	+400%+
October 2025 (During Sell-Off)	Approximately RMB 18-19 per share	+260-280%
January 12, 2026	RMB 16.83 per share	+236%

Indicator	Value	Industry Comparison
P/E (TTM)	17.62	The average for the pesticide industry is approximately 20-25x
P/B	2.04	Reasonable range
P/S	1.65	Relatively reasonable
Beta	0.65	Lower than the average market volatility

Based on the professional valuation model [0], the intrinsic value assessment of Limin Co., Ltd. is as follows:

Scenario	Intrinsic Value	Premium Over Current Share Price
Conservative Scenario	RMB 30.12	+79.0%
Base Scenario	RMB 38.90	+131.1%
Optimistic Scenario	RMB 76.48	+354.4%
Weighted Average Valuation	RMB 48.50	+188.2%

: The current share price of is significantly lower than the DCF valuation range, suggesting that the share price may be undervalued by .

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As the founder and actual controller of the company, Li Ming’s initial shareholding cost was extremely low (the company was restructured from a collective enterprise). Even if he sells his shares at the current price, he may still obtain dozens of times the book return. Cashing out through share sell-off is a normal wealth realization behavior.

• The sell-off occurred after the share price pulled back from its high (falling from RMB 24 to the range of RMB 18-19)
• After the sell-off was completed, the share price further dropped to RMB 16.83
• From the perspective of the time node, the sell-off decision may be based on the judgment that
  the short-term share price has reflected performance expectations

After the sell-off, the Li Ming family still holds approximately 24.48% of the equity, and there has been no substantive change in the company’s control right.

Evaluation Dimension	Analysis Conclusion
Valuation Perspective	The current P/E is only 17.6x, DCF shows severe undervaluation, and the sell-off timing does not fully align with the high valuation level
Performance Support	Net profit increased year-on-year in 2024, and the volume and price of pesticide products rose simultaneously under environmental protection policies
Sell-Off Scale	The cash-out amount of RMB 217 million accounts for a limited proportion relative to the company’s market capitalization (RMB 73.9 billion) and the family’s shareholding market value (approximately over RMB 1.5 billion)
Historical Behavior	The company’s share price still fluctuated in the long term after the 2019 sell-off, and the sell-off did not change the company’s fundamentals

: The actual controller’s share sell-off is more a consideration of rather than a clear signal of short-term overvalued share price. However, investors need to be alert to the factor of — the actual controller’s understanding of the company’s real operating conditions is inevitably better than that of ordinary investors.

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Based on the financial analysis model [0]:

Analysis Dimension	Rating	Key Indicators
Financial Attitude	Neutral	Accounting treatment is prudent, no aggressive or conservative operations
Revenue Quality	Good	Benefiting from the price increase of pesticide products
Cash Flow	Healthy	Free cash flow of RMB 276 million
Debt Risk	Medium	Leverage level is controllable

• The company’s core products, mancozeb and chlorothalonil, are high-efficiency, low-toxicity fungicides, which are in line with the orientation of national environmental protection policies [2]
• The Ministry of Agriculture and Rural Affairs continues to improve pesticide management regulations to promote green development of the industry

The company raised product prices multiple times in 2025 [2]:

• Mancozeb, abamectin, emamectin benzoate: increased by 5%
• Difenoconazole: increased by 10%
• Drove the gross profit margin up from 17.74% in the first half of 2024 to 26.45% in the first half of 2025

• In 2024, the output of agricultural fungicides reached 151,800 tons (2023: 119,600 tons) [2]
• Revenue increased from RMB 1.16 billion in 2016 to over RMB 5 billion in 2022

Risk Type	Specific Content
Staff Optimization	Over 400 employees were laid off in 2024 (accounting for about 8% of the total employees), mainly concentrated in production and technical personnel
Management Salary Increase	The actual controller and management received a collective substantial salary increase in 2024 (Li Xinsheng’s salary increased by RMB 1.13 million to RMB 1.85 million; Li Yuanyuan’s salary increased by RMB 1.43 million to RMB 1.84 million) [2]
Performance Sustainability	There is uncertainty whether product price increases can continue to support performance
Share Price Volatility	Although the Beta value of 0.65 is lower than the market average, the chemical sector is highly cyclical

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Based on technical analysis indicators [0]:

Indicator	Status	Interpretation
Trend Judgment	Sideways Consolidation	No clear upward or downward trend
MACD	Bullish Crossover	Medium-term momentum is bullish
KDJ	Bullish Signal	K:64.4, D:63.8
RSI	Normal Range	Not overbought
Support Level	RMB 16.20	Important short-term support
Resistance Level	RMB 17.06	Short-term resistance level

: The share price is in a . It is recommended to pay attention to the breakthrough direction of the RMB 16.20-17.06 range in the short term.

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Assessment Item	Score (5-Point Scale)
Valuation Rationality	4.5 (Undervalued)
Fundamental Quality	3.5 (Good)
Actual Controller’s Behavior	3.0 (Needs Attention)
Technical Aspect	3.0 (Neutral)
Comprehensive Rating	3.5/5

. Analysis from the following perspectives:

• The P/E ratio corresponding to the average sell-off price of RMB 18-19 is approximately 19x, which is still lower than the average level of the pesticide industry
• DCF valuation shows that the company’s intrinsic value is in the range of RMB 30-76, and the current share price has a significant discount
• The family still maintains a controlling position after the sell-off, and the scale of the sell-off accounts for a limited proportion relative to the shareholding market value
• The company’s share price did not experience a systemic decline after the 2019 historical sell-off

• Valuation Perspective
  : The current share price of
  RMB 16.83
  is significantly lower than the intrinsic value assessment (DCF weighted average of RMB 48.50), with an undervaluation range of approximately
  50%-80%
• Fundamental Perspective
  : Benefiting from the tightening of environmental protection policies and the growth in demand for green pesticides, the company’s performance has certain support
• Risk Warning
  : Need to pay attention to the information disclosure issue of simultaneous salary increases for management and staff layoffs, as well as the sustainability of product price increases

Investor Type	Recommendation
Value Investors	May consider accumulating positions on dips, with a stop-loss set below RMB 16
Short-Term Traders	Recommended to wait for a breakthrough in the RMB 16.20-17.06 range before following up
Risk Averse Investors	Recommended to pay attention to the subsequent shareholding dynamics of the actual controller and the company’s performance realization

: The actual controller’s cash-out of RMB 200 million through share sell-off is more likely a consideration of rather than a clear judgment of short-term overvalued share price. From the valuation perspective, the current share price may have , but investors need to make decisions based on their own risk preferences and position management.

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[1] Sina Finance - “Limin Co., Ltd.'s Actual Controller Li Ming Reduced Holdings by 11.63 Million Shares in Nearly 2 Months, Cashing Out RMB 217 Million” (https://finance.sina.com.cn/jjxw/2025-10-27/doc-infvinst0626046.shtml)

[2] Sina Finance - “Actual Controller and Management Received Collective Salary Increases, While Profit-Surging Limin Co., Ltd. Laid Off Staff” (https://finance.sina.com.cn/roll/2026-01-11/doc-inhfxvtm9136104.shtml)

[0] Jinling AI Financial Analysis Database - Real-time Market, Financial Analysis, Technical Analysis and DCF Valuation Data