DOUBLE ELEPHANT(SZ:002395) Xin Lang Cai Jing·2025-06-03 04:36Industry Overview - Asahi Kasei has decided to exit the PMMA (Polymethyl Methacrylate) business, with production ceasing by September 2026 and sales stopping by September 2027. This decision is primarily due to the large-scale expansion of Chinese petrochemical capacity and high raw material costs affecting Asahi Kasei's competitiveness in the PMMA market [2] - The PMMA industry is undergoing a rapid restructuring, with companies that possess cost advantages and technological barriers likely to benefit from the changes [2] Company Insights - The company is a leading domestic producer of optical-grade PMMA materials, being the first domestic enterprise to achieve large-scale production of high-end optical-grade PMMA. It currently has an annual production capacity of 155,000 tons for optical-grade PMMA and 75,000 tons for MS [3] - The company's product prices are relatively lower than imported products, while the quality has reached levels comparable to foreign counterparts, providing a significant advantage in replacing imports [3] - The company plans to accelerate the production ramp-up of its new project for 300,000 tons of optical-grade PMMA/MS materials, further solidifying its leading position in the domestic market. As the proportion of high-end PMMA modified dye products increases and MS materials reach mass production, the company's performance is expected to grow rapidly [3] - The projected net profits for the company from 2025 to 2027 are estimated to be 283 million, 338 million, and 416 million yuan, with year-on-year growth rates of -40.10%, +19.64%, and +22.85%, respectively. The corresponding price-to-earnings ratios are expected to be 17X, 14X, and 11X [3]