Quechen Company(SH:605183) NORTHEAST SECURITIES·2025-10-27 07:45Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Views - The company achieved a revenue of 1.653 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 1.16%, with a net profit attributable to shareholders of 397 million yuan, up 4.78% year-on-year [1] - The company is the largest white carbon black producer in Asia and the third largest globally, with expectations for steady performance improvement driven by the global green upgrade of tires and the release of production capacity in its facilities in Sanming and Thailand [3] Financial Performance Summary - For Q3 2025, the company reported a revenue of 541 million yuan, a slight decrease of 3.99% year-on-year, while the net profit attributable to shareholders was 121 million yuan, an increase of 3.33% year-on-year [1] - The operating cash flow for the first three quarters reached 516 million yuan, a significant increase of 25.87% year-on-year [1] - The company’s production and sales volumes remained stable, with Q3 production at 92,900 tons and sales at 92,700 tons, compared to 92,700 tons and 91,400 tons in the same period last year [1] Project Developments - The company is nearing completion of a 23,360-ton rice husk-based silica project in Anhui, which utilizes biomass to replace natural gas as fuel, aligning with the demand for green materials in downstream industries [2] - In July 2025, the company announced plans to invest 900 million yuan in two projects in Jiangsu, including a 100,000-ton biomass silica project and a 30,200-ton thickener project [2] Profit Forecast and Valuation - The company’s projected net profits for 2025, 2026, and 2027 are 629 million yuan, 749 million yuan, and 882 million yuan, respectively, with corresponding price-to-earnings ratios of 13X, 11X, and 9X [3]