SMIC(SH:600810) EBSCN·2025-03-25 03:48Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company experienced a decline in performance in 2024, with a revenue of 13.97 billion yuan, a year-on-year increase of 4%, and a net profit attributable to shareholders of 34 million yuan, a year-on-year decrease of 78% [3][4] - The nylon industry is facing a downturn, impacting the company's performance, particularly in the sales prices of nylon products [4] - The company is actively enhancing its nylon industry chain layout and expanding into Southeast Asian markets, including establishing a subsidiary in Thailand [5][6] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 139.7 billion yuan, with a net profit of 0.34 billion yuan, reflecting a significant decline compared to the previous year [3][4] - The sales volume of nylon 66 chips was 181,000 tons, up 4% year-on-year, while the average selling price decreased by 1.3% to 17,430 yuan/ton [4] - The company’s nylon 66 industrial yarn sales increased by 15.4% year-on-year, but the average selling price fell by 9.9% [4] Industry Positioning - The company is a leading player in the nylon 66 industry and is expected to benefit from future industry improvements [7] - The company is expanding its product offerings and enhancing its competitive edge through strategic partnerships and new projects [5][6] Future Outlook - The company has introduced a stock incentive plan to boost confidence in future growth, with performance targets set for 2025-2027 [6] - Profit forecasts for 2025-2027 have been adjusted downward due to the current industry conditions, with expected net profits of 0.45 billion yuan, 0.89 billion yuan, and 1.32 billion yuan respectively [7][10]