ZHUYE GP(SH:600961) Orient Securities·2025-07-20 01:20Investment Rating - The investment rating for the company is "Buy" and it is maintained [5][8] Core Views - The company is expected to benefit from the dual drivers of smelting and precious metals, leading to significant profit growth and potential for dividends in the future [2][7] - The forecasted earnings per share for 2025-2027 are adjusted to 1.02, 1.15, and 1.32 yuan, respectively, up from previous estimates of 0.93, 1.03, and 1.15 yuan [3][8] - The target price based on a 16X PE valuation for comparable companies is set at 16.32 yuan [3][8] Financial Performance Summary - Revenue projections for 2023A to 2027E are as follows: 19,406 million, 19,759 million, 22,583 million, 23,814 million, and 25,281 million, with year-on-year growth rates of -4.9%, 1.8%, 14.3%, 5.5%, and 6.2% respectively [4][11] - Operating profit is expected to grow from 755 million in 2023A to 1,732 million in 2027E, with growth rates of 14.7%, 28.9%, 38.0%, 12.1%, and 15.1% [4][11] - Net profit attributable to the parent company is projected to increase from 611 million in 2023A to 1,416 million in 2027E, with growth rates of 24.0%, 28.7%, 39.0%, 12.7%, and 15.0% [4][11] - The gross margin is expected to improve from 8.5% in 2023A to 10.9% in 2027E, while the net margin is projected to rise from 3.1% to 5.6% over the same period [4][11] Market Context - The company is positioned in the non-ferrous metals industry, specifically focusing on zinc and precious metals [5][7] - The company has a significant smelting capacity of 680,000 tons of zinc products, which is expected to support profit growth amid rising processing fees [7][8]