PRCO(002225) 天风证券·2024-11-11 13:00Investment Rating - The report gives an "Accumulate" rating for the company, marking it as the first coverage [5]. Core Viewpoints - The company is a pioneer in the internationalization strategy within the refractory materials industry, having established a strong global customer network and channels since 1998 [3][11]. - The company is actively extending its industrial chain to ensure the supply of high-quality raw materials, particularly in the wet metallurgy market, which presents significant profit elasticity potential [1][3]. - The domestic refractory materials market is gradually optimizing, with overseas markets providing important incremental sources of revenue [2][30]. Summary by Relevant Sections Company Overview - The company has a total magnesium ore reserve of approximately 93 million tons, with active mining in Tibet and ongoing construction in Xinjiang [1]. - The company ranks third in the domestic refractory materials market with a market share of 2.46% and second in terms of revenue with a market share of 2.68% [2][28]. Financial Data and Valuation - The company's revenue is projected to grow from 5,472.92 million yuan in 2023 to 7,117.08 million yuan in 2026, with a compound annual growth rate (CAGR) of approximately 10.88% [4]. - The net profit attributable to the parent company is expected to fluctuate, with estimates of 247.70 million yuan in 2023 and 314.95 million yuan in 2026 [4]. Market Dynamics - The global refractory materials market is approximately 300 billion euros, with the steel industry consuming over 60% of the total demand [2][30]. - The company has maintained a strong presence in overseas markets, with 27% of its revenue coming from international sales in 2023 [3][11]. Growth Potential - The company is expected to see a steady increase in net profit from 210 million yuan in 2024 to 310 million yuan in 2026, driven by its overseas expansion and new business developments in wet metallurgy [3][4]. - The company is currently in the pilot testing phase for its wet metallurgy business, which is anticipated to yield significant profit contributions in the future [1][3].