Zhejiang Hailide New Material (002206) 华创证券·2024-11-11 01:07Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 5.46 CNY, indicating a potential upside of 22.1% from the current price of 4.47 CNY [1][2]. Core Insights - The company reported a revenue of 4.368 billion CNY for the first three quarters of 2024, reflecting a year-on-year increase of 2.5%. The net profit attributable to shareholders reached 296 million CNY, up 8.94% year-on-year [1][2]. - The performance improvement is attributed to the full release of production capacity from the new tire cord fabric line and the industrial silk capacity in Vietnam. The Vietnam project is expected to enhance profit margins due to tax incentives and the ability to meet differentiated product demands in overseas markets [2]. - The average price of polyester industrial silk in Q3 2024 was 8,509.8 CNY/ton, with a quarter-on-quarter increase of 0.69%. The gross profit margin for the polyester industrial silk industry improved by 52.4% quarter-on-quarter [2]. - The company is gradually ramping up production of specialty polymer materials, with polyphenylene sulfide (PPS) now available for sale. This material has significant applications in emerging fields such as aerospace, new energy vehicles, and 5G/6G communications [2]. Financial Summary - For 2024-2026, the company is expected to achieve net profits of 417 million CNY, 451 million CNY, and 507 million CNY, representing year-on-year growth rates of 19.5%, 8.0%, and 12.6%, respectively. The corresponding earnings per share (EPS) are projected to be 0.36 CNY, 0.39 CNY, and 0.44 CNY [3][2]. - The total revenue forecast for 2024 is 5.823 billion CNY, with a growth rate of 3.6% compared to 2023 [3].