PRCO(002225) 新浪财经· Xin Lang Cai Jing·2025-05-01 10:40Core Viewpoint - The company reported its Q1 2025 financial results, showing a slight increase in revenue but a significant decline in net profit and cash flow, indicating operational challenges and cost pressures [1][2]. Financial Performance - Q1 2025 revenue reached 1.34 billion yuan, a year-on-year increase of 3.2% - Net profit attributable to shareholders was 50 million yuan, down 15.9% year-on-year - Non-recurring net profit also decreased by 16.1% to 50 million yuan - Operating cash flow was negative at -30 million yuan, a decline of 20 million yuan year-on-year [1][2]. Profitability Metrics - Gross margin was 17.9%, a decrease of 1.8 percentage points year-on-year, primarily due to pricing pressures from steel mills - Operating expense ratio was 11.9%, down 2.3 percentage points year-on-year - Sales net profit margin stood at 4.2%, a decrease of 0.7 percentage points year-on-year [2]. Strategic Partnerships - The company signed a strategic cooperation framework agreement with Greenme to develop a high-efficiency precipitant for the HPAL process, ensuring a stable demand for high-activity magnesium oxide - Greenme has established a nickel resource capacity of 150,000 tons per year in Indonesia, indicating strong market potential for wet nickel extraction [3]. Growth Prospects - The company is expanding its production capacity for high-activity magnesium oxide, with a new 60,000-ton production line expected to commence soon - The U.S. factory is projected to significantly contribute to revenue growth in 2024, with increasing orders and potential benefits from tariff policies - The Serbian factory is also on track for market expansion and sales growth [3][4]. Earnings Forecast - The company maintains a positive outlook for its high-activity magnesium oxide business and U.S. factory flexibility, projecting net profits of 341 million yuan, 557 million yuan, and 765 million yuan for 2025-2027 [4].