zhenhua chemical(SH:603067) Shenwan Hongyuan Securities·2025-11-02 11:16Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Views - The company's performance in Q3 2025 showed a revenue of 1.027 billion yuan, a year-on-year increase of 2.13%, but a quarter-on-quarter decrease of 12.17%. The net profit for Q3 was 112 million yuan, down 9.15% year-on-year and 38.17% quarter-on-quarter. Overall performance met expectations [7] - The company is positioned as the sole investor in the restructuring of Xinjiang Shenhong Group, which is expected to optimize the industry landscape. The company plans to invest 200 million yuan to acquire 100% equity of the target company [7] - The company’s subsidiary project in Chongqing is expected to contribute significantly to future growth, with new production capacity for various products set to come online by 2027 [7] Financial Data and Profit Forecast - The company is projected to achieve net profits of 703 million yuan, 857 million yuan, and 1.010 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 24X, 20X, and 17X [6][7] - Total revenue is expected to grow from 4.461 billion yuan in 2025 to 5.051 billion yuan in 2027, with a compound annual growth rate of approximately 9.7% [6][9] - The gross margin is forecasted to improve from 31.0% in 2025 to 31.3% in 2027, indicating a positive trend in profitability [6]