Investment Rating - The investment rating for Zhejiang Longsheng is maintained at OVERWEIGHT with a target price of RMB 11.88, indicating a potential upside of 21% from the closing price of RMB 9.85 as of May 13, 2025 [1][8]. Core Insights - Zhejiang Longsheng reported a 1Q25 revenue of RMB 3.24 billion, with an attributable net profit of RMB 0.40 billion, reflecting a year-on-year increase of 100.4% in net profit, primarily driven by its property business [1]. - The company is expected to benefit from a recovery in demand for dye and intermediate products, alongside continued revenue contributions from its property operations [1]. - The gross margin improved by 1.5 percentage points year-on-year to 28.6% in 1Q25, attributed to decreased raw material costs [2]. - The property segment is entering a monetization phase, with significant projects like the Huaxing New Town and Domus project showing strong sell-through rates [3]. Financial Performance - For 2025, the attributable net profit estimates are maintained at RMB 2,145 million, with projected earnings per share (EPS) of RMB 0.66 [4]. - Revenue is expected to grow from RMB 15,303 million in 2023 to RMB 17,709 million in 2025, representing an 11.49% increase [6]. - The company’s financial metrics indicate a projected PE ratio of 15.03 for 2025, which is above the peers' average of 15x [4][6].