ZJHM(SH:600987) GF SECURITIES·2024-12-23 02:05Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 8.44 CNY per share based on a 10X P/E ratio for 2025 [2][8]. Core Insights - The company is a leading domestic fabric dyeing enterprise, expected to increase its market share due to recovering downstream demand and the exit of small capacities. The dyeing business benefits from integrated supply chain advantages, with profit margins significantly above the industry average. The company has entered the global procurement supply chains of renowned international brands such as ZARA, M&S, Wal-Mart, and VF, with indirect exports accounting for approximately 60% of its business. In H1 2024, the dyeing business achieved revenue of 1.935 billion CNY, a year-on-year increase of 5.88%, and a total profit of 239 million CNY, up 5.59% year-on-year [1][6][7]. Summary by Sections Company Overview - The company operates in dual main businesses: dyeing and gold jewelry. Established in 1998 and listed in 2004, it focuses on "textile dyeing + gold jewelry" and supports industries such as thermal power, non-woven fabric production, industrial water, sewage treatment, dyeing machinery, and maritime logistics. In Q1-Q3 2024, the company reported revenue of 8.678 billion CNY, a year-on-year increase of 18.34%, and a net profit attributable to shareholders of 475 million CNY, up 5.23% [6][7][8]. Business Segments - The dyeing segment processes various mid-to-high-end fabrics, with an annual processing capacity of 1.02 billion meters. The company is recognized as one of the top ten competitive enterprises in the dyeing industry in China, with its "Feihang" brand enjoying high market recognition. The company operates under a processing model, which allows for low inventory and quick cash turnover [15][16]. Gold Jewelry Segment - The company is a leading gold processing enterprise, with an annual production capacity of 80 tons, ranking second in the domestic market. Following the acquisition of Shenzhen Shangjinyuan, the company aims to enhance its market share in the gold jewelry sector. In H1 2024, the gold jewelry segment generated revenue of 3.424 billion CNY, a year-on-year increase of 33.58%, with a total profit of 94 million CNY, up 49.26% year-on-year [7][8][16]. Financial Performance - The company forecasts EPS of 0.75 CNY, 0.84 CNY, and 0.91 CNY for 2024, 2025, and 2026, respectively. The projected revenue for 2024 is 11.478 billion CNY, with a growth rate of 18.8% [2][90].