NCFC(SH:600889)2024-11-22 10:29Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - Nanjing Chemical Fiber (南京化纤) is undergoing a significant restructuring, divesting its existing business and acquiring 100% of Nanjing Craft Equipment Manufacturing Co., Ltd. (南京工艺) [3][4] - The restructuring aims to pivot the company towards the production of rolling functional components, specifically ball screw assemblies and rolling guideways, which are essential in various applications including automotive steering and robotics [5][6] - The market for planetary roller screws, a new segment for the company, is estimated to have a potential market size of 14 billion RMB if Tesla's humanoid robot production reaches 1 million units [17][18] Summary by Sections Company Overview - Nanjing Chemical Fiber primarily produced viscose short fibers and PET structural core materials before the restructuring [4] - Post-restructuring, Nanjing Craft will become the sole business focus of Nanjing Chemical Fiber [4] Market Potential - The planetary roller screw market is characterized by high demand in robotics and automotive sectors, with significant growth potential as the industry evolves [7][8] - The current market price for planetary roller screws is approximately 1,400 RMB per set, indicating a lucrative opportunity for Nanjing Craft [17] Financial Performance - Nanjing Chemical Fiber has faced challenges, with cumulative losses nearing 1.4 billion RMB since 2018, which prompted the divestment of its original business [20][22] - Nanjing Craft reported total assets of 1.258 billion RMB and a net profit of 76.67 million RMB for the year 2023, showcasing a stable financial position despite the overall industry challenges [25][28] Industry Context - The domestic screw industry is largely in its conceptual phase, with few companies achieving significant market penetration [29][56] - Competitors like Hengli Hydraulic and Dingzhi Technology are also exploring the linear actuator market, but their contributions have yet to reflect in financial results [30][31] - Nanjing Craft's performance positions it as a leader in a market where many peers are still developing their capabilities [56]