NANSHAN FASHION(SZ:300918) KAIYUAN SECURITIES·2025-03-14 13:00Investment Rating - The investment rating for Nanshan Zhishang is "Buy" (maintained) [1] Core Views - The company is expected to show resilience in its 2024 performance, with a focus on the recovery of its ultra-high molecular weight polyethylene (UHMWPE) and nylon businesses in 2025. The report anticipates a gradual improvement in profitability driven by new demand in the robotics sector and the acceleration of nylon project construction [5][6] Financial Performance Summary - In 2024, the company reported a revenue of 1.616 billion yuan, a year-on-year increase of 1.0%, while the net profit attributable to shareholders was 191 million yuan, down 5.8% [5][8] - The report projects net profits for 2025, 2026, and 2027 to be 273 million yuan, 336 million yuan, and 409 million yuan respectively, reflecting a significant increase compared to previous forecasts [5][8] - The current stock price corresponds to price-to-earnings ratios of 25.4, 20.7, and 17.0 for the years 2025, 2026, and 2027 respectively [5][8] Business Segment Analysis - The main business faced pressure from downstream clothing demand, leading to a decline in fabric revenue, while clothing revenue showed steady growth. The overall profitability improved due to higher orders for high-value-added products and effective cost control [6][7] - The UHMWPE fiber segment is expected to benefit from relaxed export policies and new demands in the robotics field, with projected revenue for 2024 at 176 million yuan, a year-on-year increase of 94.75% [6][7] - The nylon project, which focuses on high-performance differentiated nylon filament, is set to begin trial production in November 2024, with full operations expected by May 2025 [6][7] Financial Metrics - The company's gross margin for 2024 is projected to decrease to 33.6%, with a net margin of 11.8% [7][8] - The report highlights a significant increase in operating income, with expectations of 2.359 billion yuan in 2025, representing a 46.0% year-on-year growth [8] - Key financial ratios include a return on equity (ROE) of 11.0% for 2025, with earnings per share (EPS) projected at 0.66 yuan [8]