LETS(SZ:002398) Zheng Quan Zhi Xing·2025-06-25 17:47Core Viewpoint - The credit rating agency maintains the long-term credit rating of Leizhi Holdings Group Co., Ltd. at AA- with a stable outlook, despite a decline in revenue and profit due to a slowdown in infrastructure investment and real estate development [1][3]. Company Overview - Leizhi Holdings specializes in construction technology services and new building materials, classified under the chemical industry [10]. - As of March 2025, the company had total assets of 58.26 billion yuan and equity of 36.89 billion yuan [9]. Financial Performance - In 2024, the company reported total revenue of 26.17 billion yuan, a decrease of 14.42% year-on-year, with profit totaling 0.48 billion yuan [9][15]. - The company's new building materials business saw a revenue decline of 12.17%, primarily due to falling prices and volumes of its additive products [15]. - The overall gross margin decreased by 2.68 percentage points in 2024, influenced by lower prices for additives [15]. Debt and Liquidity - The total debt of the company was 5.39 billion yuan as of the end of 2024, with a debt-to-asset ratio of 38.82% [5][9]. - The company has a strong debt repayment capacity, with an EBITDA interest coverage ratio of 5.92 times [5][9]. Market Position - The company holds a market share of 10.50% in the concrete additive sector, ranking first in several provinces including Fujian and Guizhou [10]. - The company has a comprehensive range of qualifications in engineering, traffic, and electrical testing, enhancing its competitive edge [3][10]. Industry Analysis - The chemical industry is experiencing a downturn, with revenue and profit trends showing divergence across segments [9]. - Despite challenges, domestic demand is expected to grow due to supportive policies, which may lead to a recovery in industry conditions [9]. Future Outlook - The company is expected to stabilize its production capacity as ongoing projects come online, with a focus on market absorption of new additive capacities [4]. - Potential factors for rating upgrades include significant capacity expansion and improved profitability [4].