PRCO(SZ:002225) 光大证券研究·2025-07-16 13:35Core Viewpoint - The company is experiencing a significant decline in net profit for the first half of 2025, attributed to various factors including demand fluctuations and credit impairment [4][5]. Group 1: Financial Performance - The company forecasts a net profit attributable to shareholders for H1 2025 between 66.6 million to 79.9 million yuan, representing a year-on-year decline of 49.99% to 40% [4]. - The adjusted net profit is expected to be between 51.3 million to 64.6 million yuan, reflecting a year-on-year decrease of 47.53% to 33.92% [4]. - The median net profit for Q2 is projected at 18.38 million yuan, down 72.9% year-on-year [5]. Group 2: Operational Developments - The company's subsidiary, Xiangchen Magnesium Industry, has recently launched a new project with an annual production capacity of 60,000 tons of high-efficiency precipitant, increasing the total capacity to 110,000 tons per year [4][6]. - The project involved an investment of approximately 35 million yuan and includes the construction of a rotary kiln and supporting systems [6][7]. Group 3: Market Conditions - The demand for active magnesium oxide has been disrupted, leading to lower shipment volumes than expected [5]. - The domestic refractory materials sector continues to face pressure due to weak demand from steel customers and declining overall contract prices, resulting in reduced gross margins [5]. - Credit impairment has been influenced by significant country-specific differences in customer conditions, with some overseas clients facing bankruptcy, leading to a 100% impairment recognition on certain receivables [5].