Hangzhou Juheshun New Material (SH:605166) Minsheng Securities·2024-10-08 13:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the coming year [2][4]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of between 220 million to 250 million yuan for the first three quarters of 2024, representing a year-on-year growth of 46.51% to 66.49% [2]. - The nylon business is experiencing strong demand, driven by the unique properties of nylon fibers, which are advantageous in various applications such as outdoor and sportswear [2]. - The company is expanding its production capacity for PA6 chips, with significant growth in both production and sales in the first half of 2024 [2]. - New projects for producing nylon 66 and specialty nylon are underway, which will enhance the company's product offerings and market position [2]. - The projected net profits for 2024, 2025, and 2026 are 280 million, 384 million, and 481 million yuan, respectively, with corresponding dynamic PE ratios of 13X, 10X, and 8X [2][3]. Financial Forecasts - The company anticipates total revenue of 7,009 million yuan in 2024, reflecting a growth rate of 16.5% compared to 2023 [3]. - The net profit margin is expected to improve, with net profit growth rates projected at 42.1% for 2024 and 37.5% for 2025 [5]. - The earnings per share (EPS) are forecasted to be 0.89 yuan in 2024, increasing to 1.22 yuan in 2025 [6]. Production and Capacity Expansion - The company’s nylon chip production capacity is set to increase with ongoing projects, including a new facility expected to begin trial operations in Q4 2024 [2]. - The company achieved a production volume of 264,300 tons and sales volume of 263,100 tons for nylon chips in the first half of 2024, marking year-on-year increases of 19.27% and 16.85%, respectively [2]. Market Trends - The nylon fiber market is experiencing a significant upswing, with a reported consumption increase of 19% year-on-year in the first eight months of 2024 [2]. - The company is strategically positioning itself to capitalize on the growing demand for specialty nylon products, which are expected to contribute to future revenue growth [2].