YANTAI TAYHO(SZ:002254) Guotai Junan Securities·2024-11-07 01:23Investment Rating - The report maintains a "Buy" rating for Taihe New Materials with a target price of 11.74 CNY, down from the previous forecast of 19.58 CNY [5][8]. Core Insights - The company's Q3 performance was slightly below expectations, with the aramid and spandex industries facing pressure on margins, awaiting a recovery in demand. The company is transitioning towards becoming a platform enterprise in new materials to support growth [3][8]. - For the first three quarters of 2024, the company reported revenue of 2.923 billion CNY, a year-on-year increase of 0.43%, while net profit attributable to shareholders was 151 million CNY, down 45.75% year-on-year [8][9]. - The spandex industry is currently experiencing a downward trend in margins, with the average price in East China for 40D spandex at 25,977 CNY per ton, a decrease of 9.8% from the previous quarter [8][9]. - The aramid industry is expected to see significant growth in demand driven by new applications, with a projected global market size of 5.3 billion USD by 2025, growing at a CAGR of 9.7% [8][9]. Financial Summary - For Q3 2024, the company achieved revenue of 971 million CNY, a year-on-year increase of 0.2%, but a quarter-on-quarter decrease of 1.5%. The net profit attributable to shareholders was 34 million CNY, down 47.0% year-on-year and 63.6% quarter-on-quarter [8][9]. - The company has adjusted its EPS forecasts for 2024-2025 to 0.25 CNY and 0.39 CNY, respectively, with a new 2026 EPS forecast of 0.57 CNY [8][9]. - The company’s total market capitalization is 8.391 billion CNY, with a current price of 9.72 CNY per share [6][8].