南山智尚：新材料领域拓展取得显著成果

Investment Rating - The investment rating for the company is "Buy" with a 6-month target price maintained at 9.92 yuan [2]. Core Insights - The company has achieved significant results in expanding its new materials sector, with a reported revenue of 1.16 billion yuan for the first three quarters of 2024, reflecting a year-on-year increase of 3.52%. The net profit attributable to the parent company was 120 million yuan, up 3.83% year-on-year [2]. - The gross margin for the first three quarters of 2024 was 33.45%, a decrease of 1 percentage point, while the net profit margin increased by 0.05 percentage points to 10.7% [2]. - The company’s fine woolen fabric business experienced a slight decline due to insufficient demand from end clothing brands, but adjustments in product structure led to an overall increase in added value, stabilizing net profit [2]. - The apparel business saw revenue and net profit growth through adjustments in customer structure and increased direct sales channels [2]. - The new materials sector, particularly the ultra-high molecular weight polyethylene fiber, achieved full production capacity of 3600 tons, resulting in a doubling of revenue [2][5]. - The company is also constructing a high-performance differentiated nylon filament project with an annual capacity of 80,000 tons, expected to enhance product variety and competitive advantage [3]. Financial Summary - For the first three quarters of 2024, the company reported a revenue of 390 million yuan, a decrease of 2.63% year-on-year, and a net profit of 40 million yuan, down 1% year-on-year [5]. - The company maintains a strong position in the industry with 12 production lines for ultra-high molecular weight polyethylene fiber, focusing on high-end product quality and specifications [5]. - The financial forecast estimates EPS for 2024, 2025, and 2026 to be 0.6 yuan, 0.8 yuan, and 0.9 yuan respectively, with corresponding P/E ratios of 16X, 13X, and 11X [4].