PRCO(SZ:002225) Tianfeng Securities·2025-10-27 08:15Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's Q3 performance shows significant improvement year-on-year, with revenue reaching 4.176 billion yuan, up 4.34% year-on-year, and a notable recovery in net profit for Q3, which was 0.26 billion yuan compared to negative figures in the same period last year [1][2] - The domestic refractory materials business continues to face pressure, leading to a downward adjustment in net profit forecasts for 2025-2027 to 1.9 billion, 3.5 billion, and 5.5 billion yuan respectively [1][2] - The report expresses optimism about the recovery of the refractory materials sector due to the gradual alleviation of intense price competition, supported by the company's overseas operations and the growth of its wet process business [3] Financial Data Summary - For the first three quarters of 2025, the company's comprehensive gross margin was 17.6%, a decrease of 1.03 percentage points year-on-year [2] - The company’s net profit margin for the same period was 2.28%, down 0.68 percentage points year-on-year, influenced by increased credit impairment losses [2] - The financial forecast indicates a projected revenue of 5.739 billion yuan for 2025, with an expected growth rate of 10.53% [5][12] Business Outlook - The report highlights the potential for profit elasticity from the wet process business, with a significant agreement with a client for the procurement of 500,000 tons of sedimentation agents by the end of 2028 [3] - The company is expected to enhance its production capacity through upgrades and modifications to its production lines, which will contribute to expanding its profit margins [3]