Elite Color(SZ:002998) Changjiang Securities·2025-04-28 10:42Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a total revenue of 2.355 billion yuan for 2024, a year-on-year decrease of 3.70%. The net profit attributable to shareholders was 84 million yuan, down 38.87% year-on-year. The net cash flow from operating activities was -115 million yuan, a decline of 155.86% year-on-year. In Q4 2024, the revenue was 741 million yuan, an increase of 30.04% year-on-year, while the net profit was -13 million yuan, down 151.07% year-on-year. The net cash flow from operating activities was 206 million yuan, up 14.29% year-on-year [2][6]. Summary by Sections Company Overview - The company has been deeply engaged in the polyester staple fiber industry for twenty years, forming a diverse range of green fiber products, including recycled polyester staple fiber and low-melting-point fibers. The company emphasizes differentiation and functionality, with a rich product series and excellent quality, serving a wide range of downstream applications. The recent growth in low-melting-point fibers has significantly boosted the company's performance [13]. Industry Analysis - The polyester staple fiber industry experienced a decline in 2024. The average prices for PTA and MEG were 5,521 yuan/ton and 4,591 yuan/ton, reflecting year-on-year changes of -5.8% and +12.4%, respectively. The average price for low-melting-point polyester staple fiber (4D*51mm) was 8,417 yuan/ton, down 3.2% year-on-year. The average price for recycled hollow (7D-15D three-dimensional with silicon) was 7,382 yuan/ton, up 1.5% year-on-year. In Q4 2024, the average prices for low-melting-point and recycled products were 7,865 yuan/ton and 7,255 yuan/ton, with quarter-on-quarter changes of -6.8% and -1.2%, respectively [13]. Future Outlook - The decline in the price of virgin low-melting-point fibers is expected to stimulate further downstream demand. The unique advantages of low-melting-point fibers, such as low melting point and high-temperature resistance, make them suitable for various applications in automotive manufacturing. The recovery of the downstream application market is anticipated to enhance the penetration rate of low-melting-point fibers, presenting considerable growth potential [13]. Financial Projections - The company is projected to achieve net profits of 140 million yuan, 180 million yuan, and 220 million yuan for the years 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios based on the closing price on April 25, 2025, are expected to be 15.2X, 11.9X, and 9.8X [13].