The pesticides and chemical fertilizers sector is strengthening again. The Farmers and Livestock ETF Jianxin(159616) tracked index rose over 1% at one point, and the fertilizer industry is entering a seasonal boom cycle.

As of the close on February 26, 2026, the China Securities Agricultural and Animal Husbandry Theme Index (931778) rose more than 1% at one point, closing up 0.53%. Sample stocks such as Salt Lake Shares increased by 7.76%, Andy Su by 4.68%, Guangxin Shares by 2.90%, Lianhua Technology by 2.66%, and Zangge Mining by 2.59%.

Recently, prices of mainstream products like urea, potassium sulfate compound fertilizer, and ammonium phosphate have increased. According to Wind data, on February 24, the market price of ammonium phosphate (55% powder) reached 3,850 yuan/ton, a year-on-year increase of 16.67%. Relevant companies responded that spring and summer are the traditional peak sales seasons for the fertilizer industry, and the industry as a whole is currently in a seasonal prosperity cycle. From now on, roughly the next 100 days will be the industry’s peak sales season. Besides seasonal effects, the current price increases are also related to raw material price hikes.

Everbright Securities analysis indicates that the industry’s bottoming out in prices and improving prosperity are still in progress. The overall fertilizer industry remains in the bottom phase of its cycle, with mainstream raw materials and herbicide prices staying at relatively low levels.

Everbright Securities believes that as inventory cycles bottom out and global agricultural demand stabilizes and recovers, the industry’s overall prosperity shows signs of marginal improvement. Additionally, during the process of supply-side “anti-involution” and natural capacity reduction, industry competition has shifted from simple scale expansion to technological-driven value addition. On one hand, they are optimistic about leading companies with complete product and intermediate capacity layouts, and on the other hand, about companies with deep involvement in innovative pesticide development.

The China Securities Agricultural and Animal Husbandry ETF, Jianxin (159616), closely tracks the China Securities Agricultural and Animal Husbandry Theme Index. The index selects 50 listed companies involved in fields such as grain planting, seed production, pesticides and fertilizers, agricultural machinery, livestock breeding, feed production, and animal health, as samples to reflect the overall performance of listed companies in the agricultural and animal husbandry sectors.