zhenhua chemical(SH:603067) Guohai Securities·2026-01-05 07:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on the anticipated benefits from the chromium salt market cycle [14]. Core Insights - The company plans to issue convertible bonds to raise up to RMB 878 million for investment in new projects, including a 50,000 tons/year chromium powder project and a 7.4 million tons/year chromium green project, which will enhance production capacity and optimize processes [6][8]. - The innovative "Vitamin K3 co-production chromium green" process is expected to break the production bottleneck and improve the quality and stability of chromium green products, aligning with the growing demand in high-temperature alloy markets [8][11]. - The company is well-positioned to benefit from the increasing demand for chromium salts driven by the aerospace and military sectors, with a projected supply-demand gap of 340,900 tons by 2028 [11]. Financial Projections - Revenue forecasts for 2025, 2026, and 2027 are estimated at RMB 43.63 billion, RMB 66.42 billion, and RMB 72.52 billion, respectively, with corresponding net profits of RMB 6.04 billion, RMB 11.96 billion, and RMB 13.70 billion [11][12]. - The projected P/E ratios for the same years are 34, 17, and 15 times, reflecting a favorable valuation as the company is expected to benefit from the chromium salt market cycle [11][12]. Market Performance - The company's stock has shown significant growth, with a 12-month performance increase of 221.5%, outperforming the Shanghai and Shenzhen 300 index [5]. - As of December 31, 2025, the company's market capitalization stands at RMB 20.477 billion, with a current stock price of RMB 28.81 [5].