PRCO(002225) 中原证券·2025-04-25 12:07Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [23]. Core Views - The company has shown resilience in its overseas business, particularly in the active magnesium oxide segment, which is expected to contribute to performance elasticity [5][10]. - The company's revenue for 2024 was 5.192 billion yuan, a decline of 5.13% year-on-year, with a net profit attributable to shareholders of 135 million yuan, down 45.48% year-on-year [5][10]. - The report highlights the impact of weak downstream demand, leading to revenue pressure, particularly in the steel sector, which accounts for approximately 70% of the refractory materials market [8][10]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 51.92 billion yuan, with a significant drop in net profit to 1.35 billion yuan, reflecting a 45.48% decrease year-on-year [5][10]. - The gross profit margin for the company was 18.99%, a decrease of 0.94 percentage points compared to the previous year [8][10]. - Operating cash flow remained robust, with a net cash flow from operations of 4.31 billion yuan, an increase of 12.39% year-on-year [8][10]. Business Segments - Revenue from the steel segment decreased by 7.77% to 44.33 billion yuan, while the environmental materials segment saw a decline of 23.49% to 3.80 billion yuan [8][10]. - The active magnesium oxide business is progressing steadily, with overseas revenue holding steady at 14.55 billion yuan, and significant growth in the U.S. factory's revenue, which increased by 72% year-on-year [8][10]. Future Outlook - The report projects revenues for 2025, 2026, and 2027 to be 54.51 billion yuan, 57.05 billion yuan, and 59.62 billion yuan, respectively, with net profits expected to rise to 2.14 billion yuan, 2.32 billion yuan, and 2.43 billion yuan [10][11]. - The company is expected to benefit from the ongoing expansion of its active magnesium oxide business and the continued ramp-up of production in the U.S. [10].