Quechen Company(SH:605183) Shenwan Hongyuan Securities·2025-08-25 02:15Investment Rating - The report maintains an "Outperform" rating for the company [8]. Core Insights - The company reported a record high revenue and sales volume in Q2, with a slight decrease in net profit year-on-year due to foreign exchange impacts [8]. - The company’s silica sales have shown steady growth, supported by product structure optimization and new capacity releases in Fujian [8]. - The company is expanding its product lines, including high-dispersion silica and biomass silica, which are gaining traction in the market [8]. - The company has plans for a new biomass silica project with an estimated investment of 900 million yuan, aiming to meet long-term customer demand [8]. - The company’s profitability is expected to grow, with projected net profits of approximately 599 million, 660 million, and 721 million yuan for 2025, 2026, and 2027 respectively [8]. Financial Data and Profit Forecast - Total revenue is projected to reach 2,540 million yuan in 2025, with a year-on-year growth rate of 15.6% [2]. - The net profit attributable to the parent company is expected to be 599 million yuan in 2025, reflecting a growth rate of 10.8% [2]. - The gross margin is forecasted to be 34.4% in 2025, slightly improving to 35.0% by 2027 [2]. - The company’s earnings per share (EPS) is projected to be 1.44 yuan in 2025, increasing to 1.73 yuan by 2027 [2]. Market Data - The closing price of the company’s stock was 20.85 yuan as of August 22, 2025, with a market capitalization of 8,599 million yuan [3]. - The company has a price-to-earnings (P/E) ratio of 14 for 2025, which is expected to decrease to 12 by 2027 [2][3].