PRCO(002225) 国泰君安·2024-08-21 08:39Investment Rating - The report maintains an "Accumulate" rating for the company [4][11]. Core Views - The company reported a revenue of 2.698 billion yuan for the first half of 2024, representing a year-on-year increase of 2.54%. However, the net profit attributable to shareholders decreased by 8.16% to 133 million yuan, and the net profit after deducting non-recurring gains and losses fell by 27.37%, slightly below expectations [11]. - Domestic business remains stable, while overseas growth is experiencing a temporary slowdown. The company is making progress in the verification of magnesium oxide for wet metallurgy applications, with multiple customer trial orders obtained [5][11]. - The company has adjusted its EPS forecasts for 2024-2026 to 0.27, 0.32, and 0.38 yuan, respectively, while maintaining the target price at 5.36 yuan [11]. Financial Summary - The company achieved a domestic revenue of 1.972 billion yuan in the first half of 2024, an increase of 3.45%. The overseas revenue was 726 million yuan, a slight increase of 0.16% [11]. - The overall gross margin has slightly decreased due to rising raw material prices and pricing pressures in the refractory materials sector, but ongoing cost reduction and efficiency improvements are expected to stabilize profitability [11]. - The company is focusing on high-end applications in the magnesium industry, with successful breakthroughs in wet metallurgy magnesium oxide technology, which is expected to drive domestic substitution demand [11].