Longyan Zhuoyue New Energy (SH:688196) Tai Ping Yang Zheng Quan·2025-11-05 12:43Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][12]. Core Insights - The company has shown continuous improvement in profitability, with a significant increase in net profit driven by operational efficiencies and new product lines [5][6]. - The company is advancing a project to produce 100,000 tons of hydrocarbon-based biodiesel, which is expected to enhance its market competitiveness and financial performance [6][8]. - The company reported a revenue of 2.343 billion yuan for the first three quarters of 2025, a year-on-year decrease of 21.24%, but net profit increased by 81.23% to 167 million yuan [4][5]. Financial Performance Summary - The company achieved a gross profit margin of 11.73% in Q3 2025, up from 10.17% in H1 2025 and 3.56% in the same period last year [5]. - The projected net profits for 2025, 2026, and 2027 are 253 million yuan, 403 million yuan, and 485 million yuan, respectively, with corresponding PE ratios of 25x, 16x, and 13x [6][7]. - The company’s revenue is expected to recover in 2026 and 2027, with growth rates of 35.41% and 31.56%, respectively, following a decline in 2025 [7].