PRCO(SZ:002225) EBSCN·2025-01-14 05:55Investment Rating - The report maintains an "Accumulate" rating for the company [5]. Core Views - The signing of the strategic cooperation agreement with Greenmeat marks a significant opportunity for the company to enter the large wet nickel extraction market, indicating substantial future growth potential [2]. - The company has demonstrated five advantages of using active magnesium oxide over sodium hydroxide, alleviating market concerns regarding the feasibility and economic viability of large-scale production [2]. - The theoretical production capacity of the company's active magnesium oxide can reach 450,000 tons, with stable supply and cost advantages compared to other production methods [2]. Financial Forecasts and Valuation - The forecast for the company's net profit for 2024 has been revised down to 133 million, a decrease of 36% from previous estimates, while the 2025 net profit forecast remains at 256 million, and the 2026 forecast has been increased to 383 million, reflecting a 25% increase [3]. - Revenue projections show a steady increase from 4,936 million in 2022 to 7,350 million in 2026, with a compound annual growth rate of approximately 12.93% [4]. - The company's earnings per share (EPS) is expected to recover from 0.13 in 2024 to 0.38 in 2026, indicating a positive trend in profitability [4]. Market Potential - The global demand for wet nickel extraction is projected to reach 1 million tons by 2026, with only 300,000 tons of projects currently established, highlighting the significant market potential [2]. - The company’s active magnesium oxide production method is positioned to meet the increasing demand from nickel extraction clients, particularly those represented by Greenmeat [3].