NANSHAN FASHION(300918) Tianfeng Securities·2025-04-30 03:17Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [7][18]. Core Views - The company demonstrated revenue resilience with Q1 2025 revenue of 362 million, a year-on-year increase of 0.72%, and a net profit of 37 million, up 0.86% year-on-year [1]. - The gross margin stands at 32%, slightly down by 0.36 percentage points year-on-year, while the gross margin for ultra-high molecular weight polyethylene fiber increased by 17 percentage points year-on-year to 28% [2]. - The company has established a vertically integrated business model, controlling the entire supply chain from raw wool processing to retail, with an annual production capacity of 16 million meters of fine woolen fabric and 750,000 suits [3]. Financial Performance - The company reported a net cash flow from operating activities of -80 million, a significant decline of 4417% year-on-year, primarily due to increased material purchases for new projects [2]. - The company forecasts revenues of 2 billion, 2.6 billion, and 3.3 billion for 2025, 2026, and 2027 respectively, with net profits projected at 260 million, 340 million, and 450 million for the same years [6][11]. Product Development - The company has successfully launched a project producing 3,600 tons of ultra-high molecular weight polyethylene fiber, achieving breakthroughs in key fiber preparation technologies [4]. - An 80,000-ton nylon filament project has commenced trial production, marking a significant advancement in high-performance differentiated nylon materials [5]. Market Position - The company is recognized as a core supplier of high-end suit fabrics globally, with a strong focus on innovation and technology, holding multiple patents and achieving an 80% penetration rate of intelligent equipment [3][4].