Hangzhou Juheshun New Material (SH:605166) Minsheng Securities·2025-01-22 23:35Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [4]. Core Views - The company is expected to achieve a net profit attributable to shareholders of approximately 290-320 million yuan in 2024, representing a year-on-year growth of 47.42%-62.67% [1]. - The nylon business is experiencing sustained high demand, driven by the unique properties of nylon fibers, which are advantageous in various applications such as outdoor and sportswear [2]. - The company is expanding its production capacity for PA6 chips and is actively pursuing new product opportunities in the nylon 66 and specialty nylon sectors, which are expected to enhance its competitive edge and profitability [3]. Summary by Sections Financial Performance - The company forecasts a net profit of 301 million yuan for 2024, with projected growth rates of 53.2% for 2024, 34.1% for 2025, and 11.8% for 2026 [4][5]. - Revenue is expected to grow from 6,190 million yuan in 2024 to 11,696 million yuan in 2026, reflecting a significant increase in business activity [5][10]. Market Trends - The nylon fiber market is projected to grow, with a reported consumption increase of 17.39% year-on-year, reaching 281.45 million tons in 2024 [2]. - The company is set to enhance its production capabilities with new projects, including a 12.4 million-ton nylon new materials project and an 8 million-ton nylon 66 project, which will diversify its product offerings [3]. Valuation Metrics - The price-to-earnings (PE) ratio is projected to decrease from 19 in 2023 to 8 by 2026, indicating an attractive valuation as earnings grow [5][10]. - The price-to-book (PB) ratio is also expected to decline from 2.1 in 2023 to 1.5 in 2026, further suggesting potential value for investors [5][10].