RC(SZ:300596) Changjiang Securities·2025-05-05 08:43Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a Q1 2025 revenue of 1.48 billion yuan, representing a year-on-year increase of 9.4% and a quarter-on-quarter increase of 4.2%. The net profit attributable to shareholders was 110 million yuan, a year-on-year increase of 0.7% but a quarter-on-quarter decrease of 4.0%. The net profit after deducting non-recurring gains and losses was 100 million yuan, reflecting a year-on-year increase of 4.1% and a quarter-on-quarter decrease of 6.3% [2][6]. - The company is a leader in anti-aging additives in China, possessing core technologies in antioxidants and light stabilizers. It is expanding its main production capacity through both organic growth and acquisitions, establishing six major production bases domestically. Additionally, the company is entering the lubricant additives, life sciences, and electronic materials sectors to create second and third growth curves, ensuring long-term growth [2][12]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 1.48 billion yuan, with a year-on-year growth of 9.4% driven by increased sales of U-pack, antioxidants, and lubricant additives. The gross margin was 21.5%, showing a slight year-on-year increase of 0.1 percentage points. The operating expense ratio was 12.2%, remaining stable year-on-year [2][12]. Production Capacity and Market Dynamics - The utilization rate of anti-aging additives is expected to improve, and the profitability of lubricant additives is gradually recovering. The company anticipates an upward trend in revenue and profit due to improved downstream demand and industry supply conditions starting from Q2 2024 [12]. - The new U.S. tariff changes are likely to accelerate the domestic substitution process for lubricant additives, as the cost of imported raw materials from the U.S. has increased significantly [12]. Strategic Expansion - The company is expanding rapidly through both internal growth and acquisitions, establishing itself as a platform-based leader in fine chemicals. It has six production bases for anti-aging agents across various regions in China, ensuring stable growth in its main business. The lubricant additives segment is expected to see continued growth with a designed capacity of 133,000 tons by the end of 2024 [12]. - The life sciences division is focusing on bioblocks and synthetic biology, while the company is also making strides in high-end electronic-grade polyimide materials through acquisitions and partnerships [12]. Profit Forecast - The company forecasts net profits attributable to shareholders of 540 million yuan, 630 million yuan, and 740 million yuan for the years 2025, 2026, and 2027, respectively [12].