Longhua Technology(SZ:300263) NORTHEAST SECURITIES·2026-01-13 05:10Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Insights - The company is experiencing rapid growth in the new materials sector, particularly with its PMI foam materials, which are essential for various aircraft and other applications. The subsidiary, Zhaoheng Technology, achieved a revenue of 61.836 million yuan and a net profit of 30.4063 million yuan in the first half of 2025, representing year-on-year growth of 29.11% and 45.32% respectively [1]. - The extraction agent project by the subsidiary, Sannuo New Materials, is expected to commence production within the year, significantly enhancing the company's capacity and profitability in various sectors including metallurgy and battery metal recycling [2]. - The electronic new materials business is steadily growing, with products used in semiconductor manufacturing and photovoltaic applications. The company is actively developing new target materials for various advanced technologies [2]. Financial Summary - The projected revenues for the company from 2025 to 2027 are 3.015 billion yuan, 3.858 billion yuan, and 4.881 billion yuan respectively, with net profits expected to be 185 million yuan, 282 million yuan, and 421 million yuan during the same period [4]. - The company’s earnings per share are forecasted to increase from 0.18 yuan in 2025 to 0.41 yuan in 2027, indicating a strong growth trajectory [4]. - The net profit margin is expected to improve from 4.8% in 2024 to 8.6% in 2027, reflecting enhanced operational efficiency [4].