SMIC(SH:600810) East Money Securities·2024-06-24 09:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [14]. Core Views - The company is focusing on its core nylon business by divesting non-core assets, specifically transferring a 71% stake in a polycarbonate materials company to its controlling shareholder for 591 million yuan, which had reported a net loss of 100 million yuan in 2023 [2][6]. - The company is enhancing its vertical integration and product innovation, with nylon 66 expected to see a compound annual growth rate of 17% from 2026 to 2030 in China. The company is positioned among the top five global producers [3]. - The company has successfully launched several new high-end nylon 66 products and has achieved global recycling certification for its regenerated fibers and chips, further strengthening its market competitiveness [3]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 143.29 billion yuan, 157.50 billion yuan, and 176.91 billion yuan, respectively, with year-on-year growth rates of 10.91%, 9.92%, and 12.33% [9]. - The net profit attributable to the parent company is expected to be 386.03 million yuan, 518.35 million yuan, and 739.51 million yuan for the years 2024, 2025, and 2026, reflecting significant growth rates of 212.89%, 34.28%, and 42.67% [9][13]. - The earnings per share (EPS) are projected to be 0.37 yuan, 0.50 yuan, and 0.71 yuan for the respective years, with corresponding price-to-earnings (P/E) ratios of 17, 13, and 9 [9][13].