PRCO(SZ:002225) Tianfeng Securities·2025-01-19 06:22Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 5.82 CNY [6]. Core Views - The company has signed a strategic cooperation framework agreement with Greenme, focusing on developing an efficient precipitant product suitable for high-pressure leaching (HPAL) processes for nickel extraction from laterite ores in Indonesia [1]. - Greenme's total demand for active magnesium oxide exceeds 200,000 tons, indicating significant market potential in Indonesia's hydrometallurgical nickel sector [2]. - The company is expected to generate a net profit of approximately 100 million CNY from its existing capacity, with potential for fivefold profit growth in the long term [3]. Summary by Sections Strategic Cooperation - The agreement with Greenme ensures that the company's existing production capacity will prioritize supplying Greenme until the company's new capacity meets demand [1]. Market Potential - Greenme's nickel smelting capacity in Indonesia is projected to reach 216,000 tons, with a corresponding demand for active magnesium oxide estimated at 216,000 tons based on a 1:1 consumption ratio [2]. - The report highlights the vast opportunities in the hydrometallurgical nickel market in Indonesia, with total capacity from Chinese enterprises exceeding 500,000 tons [2]. Financial Projections - The company anticipates a net profit of 82 to 120 million CNY in 2024, with long-term projections suggesting a potential net profit of 408 to 600 million CNY based on future mining capacity [3]. - The report adjusts the company's 2024 net profit forecast to 140 million CNY, while maintaining projections of 250 million CNY and 310 million CNY for 2025 and 2026, respectively [3].