Zhejiang Longsheng(SH:600352) Guohai Securities·2025-10-30 11:41Investment Rating - The report maintains a "Buy" rating for Zhejiang Longsheng (600352) as of October 30, 2025 [1]. Core Insights - The company has shown steady growth in net profit attributable to shareholders, with a 3.23% year-on-year increase in the first three quarters of 2025, despite an 8.85% decline in revenue [6][9]. - The dye industry remains competitive, with domestic overcapacity leading to low sales prices, but the company is leveraging its leading position to maintain market share [6][7]. Financial Performance Summary - For the first three quarters of 2025, Zhejiang Longsheng achieved revenue of 9.671 billion yuan, down 8.85% year-on-year, while net profit reached 1.397 billion yuan, up 3.23% [6]. - In Q3 2025, the company reported revenue of 3.166 billion yuan, a decrease of 13.39% year-on-year, but net profit increased by 4.00% to 469 million yuan [5]. - The gross profit margin for the first three quarters was 29.32%, an increase of 0.71 percentage points year-on-year, while the net profit margin was 16.47%, up 1.78 percentage points [6]. Market Position and Strategy - The company is focusing on direct sales in the dye sector and maintaining its distribution business to enhance its competitive edge during industry downturns [7]. - In the first three quarters, the company sold 174,617 tons of dyes, an increase of 188 tons year-on-year, demonstrating stable market share growth [7]. Profit Forecast and Valuation - The report projects revenues for 2025-2027 to be 14.816 billion, 19.473 billion, and 22.659 billion yuan, respectively, with net profits of 2.125 billion, 2.460 billion, and 2.904 billion yuan [9]. - The corresponding price-to-earnings (PE) ratios are expected to be 16, 14, and 12 times for the respective years [9].