NANSHAN FASHION(300918) 太平洋·2025-03-19 07:30Investment Rating - The report maintains a "Buy" rating for Nanshan Zhishang (300918) with a target price based on the last closing price of 21.34 [1][8]. Core Views - The traditional business remains stable, with expectations for accelerated growth in ultra-high molecular weight polyethylene (UHMWPE) and nylon in 2025 [1][8]. - The company is focusing on optimizing product structure and enhancing operational quality, which is expected to improve profitability in its traditional business [5][8]. Financial Performance Summary - In 2024, the company reported revenue of 1.616 billion yuan, a year-on-year increase of 1.0%, and a net profit attributable to shareholders of 191 million yuan, a decrease of 5.8% [4][11]. - The fourth quarter of 2024 saw revenue of 453 million yuan, down 5.0% year-on-year, and a net profit of 66 million yuan, down 19.8% year-on-year [4][11]. - The company’s revenue and net profit forecasts for 2025, 2026, and 2027 are 2.317 billion yuan, 2.818 billion yuan, and 3.337 billion yuan respectively, with corresponding net profits of 258 million yuan, 330 million yuan, and 413 million yuan [11][8]. Business Segment Performance - The fabric segment experienced a revenue decline of 9.54% to 810 million yuan, influenced by downstream demand, but the gross margin improved by 1.54 percentage points to 35.54% due to high-value product orders and effective cost control [5][8]. - The apparel business saw a revenue increase of 4.45% to 610 million yuan, with a gross margin increase of 0.75 percentage points to 36.55% as the company strategically reduced low-margin orders [5][8]. - The UHMWPE segment achieved a revenue increase of 94.75% to 176 million yuan, driven by the full production of the second phase [6][8]. Strategic Developments - The company plans to establish a garment production facility in Indonesia with a total investment of 15.67 million USD (approximately 112.38 million yuan), expected to enhance overseas trade by leveraging local labor and tax incentives [5][8]. - The nylon project, with an annual capacity of 80,000 tons, is progressing well, with partial production lines already operational and full operations expected by May 2025 [6][8]. Growth Outlook - The company aims to build a new materials industry ecosystem with a focus on traditional apparel and new material fibers, anticipating a synergistic development across the entire industry chain [8][11]. - The expected net profit growth rates for 2025, 2026, and 2027 are 35.2%, 28.1%, and 25.0% respectively, indicating strong future performance [11][8].