PRCO(002225) 长江证券·2025-04-23 09:49Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of 5.192 billion yuan for 2024, a decrease of 5.13% year-on-year, and a net profit attributable to shareholders of 135 million yuan, down 45.48% year-on-year [2][4]. - In Q4 2024, the revenue was 1.189 billion yuan, a decline of 16.36% year-on-year, with a net profit of 12.15 million yuan, down 69.65% year-on-year [2][4]. - The overall market conditions are challenging, with a slight decline in demand for refractory materials due to a decrease in national crude steel production by 1.7% and cement production by 9.5% in 2024 [5]. - The company’s refractory materials sales volume was 773,000 tons in 2024, a slight increase of 0.7% year-on-year, but the average selling price decreased by 416 yuan per ton to 6,718 yuan [5]. - Domestic sales were 3.74 billion yuan, down 6.6% year-on-year, while overseas sales were 1.45 billion yuan, down 1.24% year-on-year [5]. - The raw materials division saw significant growth, with revenue increasing by 40.3% year-on-year to 817 million yuan, attributed to an increase in self-supply of magnesia [6]. - The company is expanding its active magnesium oxide business, with potential orders in the Indonesian nickel and African cobalt markets, and has established production capacity in the US and Serbia [6]. - Expected earnings for 2025-2026 are projected at 300 million and 430 million yuan, corresponding to PE ratios of 17 and 12 times, respectively [6]. Financial Summary - For 2024, total revenue is projected at 5.192 billion yuan, with a gross profit of 986 million yuan, resulting in a gross margin of 19% [16]. - The company anticipates a gradual increase in revenue to 5.506 billion yuan in 2025 and 5.753 billion yuan in 2026 [16]. - The net profit is expected to rise from 129 million yuan in 2024 to 320 million yuan in 2025 and 467 million yuan in 2026 [16].