NANSHAN FASHION(300918) Huaxin Securities·2025-02-28 08:06Investment Rating - The report assigns a "Buy" investment rating for the company [2][7]. Core Insights - The company is experiencing growth in its new materials business, particularly in UHMWPE fibers and nylon filament, which are expected to drive future profitability [6][7]. - Despite a slight decline in revenue and net profit in Q3 2024 due to the traditional worsted wool business being impacted by weak performance in end-brand apparel, the company has managed to maintain stable net profit through product structure adjustments [4]. - The company has optimized its expense structure, leading to significant improvements in cash flow, with a net cash flow from operating activities of 0.31 billion yuan in Q3 2024, an increase of 0.52 billion yuan year-on-year [5]. Financial Performance - For the first nine months of 2024, the company achieved total revenue of 1.163 billion yuan, a year-on-year increase of 3.52%, and a net profit attributable to shareholders of 0.125 billion yuan, up 3.83% year-on-year [4]. - The company forecasts net profits of 0.212 billion yuan, 0.265 billion yuan, and 0.326 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.58, 0.69, and 0.85 yuan [7][10]. Business Segments - The new materials segment is entering a rapid growth phase, with the nylon filament project expected to be fully operational by the end of 2024, targeting high-growth markets such as sportswear and sun-protective clothing [6]. - The company has achieved full production capacity of 3,600 tons for UHMWPE, maintaining a balance between production and sales while exploring new applications in robotics and protective materials [6]. Market Position - The company's stock price is currently at 20.67 yuan, with a total market capitalization of 7.9 billion yuan and a 52-week price range of 7.1 to 21 yuan [2].