Zhejiang Longsheng(SH:600352) Great Wall Securities·2025-09-08 09:09Investment Rating - The report maintains an "Accumulate" rating for Zhejiang Longsheng [4] Core Views - The company is experiencing stable growth in dye production and sales, with the real estate business expected to gradually realize revenue [2][10] - The report highlights the positive performance of reactive dye prices and anticipates continued improvement in the company's core business segments [2][10] Financial Summary - Revenue projections for 2025-2027 are estimated at 172.37 billion, 184.14 billion, and 194.36 billion CNY, representing year-on-year growth rates of 8.5%, 6.8%, and 5.6% respectively [10] - Net profit attributable to the parent company is projected to be 21.04 billion, 23.34 billion, and 24.43 billion CNY for the same period, with growth rates of 3.6%, 10.9%, and 4.7% respectively [10] - The latest diluted EPS is expected to be 0.65, 0.72, and 0.75 CNY for 2025, 2026, and 2027 respectively [10] Business Segments - In the first half of 2025, the company's revenue from various segments was as follows: dyes (3.63 billion CNY), intermediates (1.50 billion CNY), additives (477 million CNY), inorganic products (330 million CNY), and real estate (226 million CNY) [2] - The gross profit margins for these segments were 34.17%, 29.30%, 31.12%, -6.77%, and 29.82% respectively, with year-on-year changes indicating a mixed performance across segments [2] Cost and Cash Flow Analysis - In the first half of 2025, selling expenses decreased by 7.30%, while management and R&D expenses increased by 11.17% and 11.61% respectively [3] - The net cash flow from operating activities was 4.162 billion CNY, showing a significant year-on-year increase of 92.48% [3] Real Estate Development - The company is making steady progress in its real estate projects, with a high pre-sale ratio of 95.1% for the Bay Shang Plaza project and pre-sale ratios of approximately 94% for other projects [8] - The ongoing construction of the Huaxing New City project is expected to be completed by December 2026, contributing to future revenue realization [8] Strategic Initiatives - The company is focusing on extending its industrial chain and enhancing its position in the specialty chemicals sector, with plans to develop key intermediates and strengthen upstream raw material supply chain control [9] - Investments in R&D for new materials and special additives are being prioritized to accelerate the development of new business segments [9]