CHANGHAI(300196) 民生证券·2024-10-26 16:07Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 11.73 yuan and projected dynamic PE ratios of 17X, 11X, and 8X for the years 2024, 2025, and 2026 respectively [4][6]. Core Views - The company has shown a return to growth in Q3 2024, with a single-quarter revenue of 679 million yuan, a slight year-on-year decrease of 0.25%, and a net profit of 80 million yuan, reflecting a year-on-year increase of 3.83% [1]. - The gross margin for Q3 2024 was 24.45%, which is an increase of 0.40 percentage points year-on-year and 0.52 percentage points quarter-on-quarter, indicating stable profitability [1][2]. - The company is expected to benefit from its full industry chain layout and the upcoming capacity releases, which will enhance its competitive edge [4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 1.903 billion yuan, down 4.30% year-on-year, and a net profit of 202 million yuan, down 29.68% year-on-year [1]. - The Q3 2024 single-quarter gross profit margin was 24.45%, showing resilience in profitability despite market challenges [1][2]. Market Trends - The report highlights that the rough yarn industry is experiencing price resilience, with the average price for 2400tex yarn at 3682 yuan/ton in Q3 2024, reflecting a year-on-year increase of 0.9% [2][3]. - The industry inventory levels increased to 756,000 tons by the end of Q3 2024, indicating a 20.4% rise, but the company’s inventory management is better than the industry average [2][3]. Production Capacity and Strategy - The company is advancing its high-performance glass fiber manufacturing project, with the first line expected to be operational by the end of August 2024, which will support its focus on high-end products like wind power yarn [4]. - The report anticipates that the company will continue to optimize its product structure, particularly in the wind power sector, which is expected to see increased demand [4].