RC(SZ:300596) Dongxing Securities·2025-10-24 10:21Investment Rating - The report maintains a "Strong Buy" rating for the company [4][12]. Core Insights - The company has demonstrated steady revenue growth, with a year-on-year increase of 5.72% in the first three quarters of 2025, achieving a total revenue of 4.509 billion yuan. The net profit attributable to shareholders increased by 24.92% year-on-year, reaching 392 million yuan [2][3]. - The company's gross profit margin improved by 0.59 percentage points to 21.72%, contributing to the net profit growth. The quarterly gross profit margins for Q1, Q2, and Q3 of 2025 were 21.52%, 21.65%, and 21.97%, respectively [3]. - The company is expanding its lubricant additive business, with the second phase of the Jinzhou Kangtai project expected to commence production in 2024. The company is actively developing major clients and participating in the establishment of industry standards in China [3]. - The company is making positive strides in emerging business areas, including life sciences and polyimide materials. The life sciences segment is transitioning from R&D to market development, while a new production base and R&D center for polyimide materials are being established in Yixing, with trial production expected in 2026 [4]. - The company is also planning to build an overseas R&D and production base in Malaysia for high-performance polymer materials and lubricant additives [4]. Financial Forecasts - The company is projected to achieve net profits of 528 million yuan, 619 million yuan, and 713 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding earnings per share (EPS) of 2.30 yuan, 2.69 yuan, and 3.11 yuan [4][11]. - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are estimated to be 17, 15, and 13 times, respectively [4].