Richful(SZ:300910) Changjiang Securities·2025-08-28 15:19Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a year-on-year revenue growth of 10.8% in the first half of 2025, achieving a total revenue of 1.66 billion yuan and a net profit attributable to shareholders of 370 million yuan, which is a 16.1% increase year-on-year [5][11]. - The second quarter revenue was 810 million yuan, reflecting a year-on-year increase of 3.4% but a quarter-on-quarter decrease of 4.2% due to seasonal factors and reduced orders from northern customers [5][11]. - The gross margin for the first half of the year was 36.3%, up by 0.6 percentage points year-on-year, primarily due to a decrease in raw material prices for lubricant additives [11]. - The company continues to expand its lubricant additive production capacity, with a designed annual capacity of 315,000 tons by the end of 2024, an increase of 115,000 tons from 2023 [11]. - The company is transitioning towards compound agents, with over 60% of revenue coming from this segment, and is actively pursuing API certification for its products [11]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 1.66 billion yuan, a net profit of 370 million yuan, and a net profit excluding non-recurring items of 350 million yuan [5][11]. - The second quarter results showed a revenue of 810 million yuan, a net profit of 180 million yuan, and a net profit excluding non-recurring items of 170 million yuan [5][11]. Production Capacity and Strategy - The company has increased its lubricant additive production capacity to 315,000 tons by the end of 2024, with ongoing projects expected to reach operational status by the end of 2025 [11]. - The company is focusing on expanding its product line and enhancing its capabilities in compound agents, which are expected to drive significant revenue growth [11]. Market Position and Future Outlook - The company is recognized as a leading supplier of lubricant additives in China and a major global supplier of carbon-free paper color developers, with a comprehensive product line and strong R&D capabilities [11]. - The projected net profits for 2025, 2026, and 2027 are estimated to be 830 million yuan, 1.1 billion yuan, and 1.39 billion yuan, respectively [11].