NANSHAN FASHION(SZ:300918) Tianfeng Securities·2025-04-30 05:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7][6]. 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%, a slight decrease of 0.36 percentage points year-on-year, while the gross margin for ultra-high molecular weight polyethylene fiber increased by 17 percentage points 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 high-end wool 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 financing activities generated a net cash flow of 110 million, a year-on-year increase of 6543%, mainly from increased borrowings [2]. - The company expects 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 an 8,000-ton nylon filament project, marking a significant breakthrough in high-performance differentiated nylon, with applications in various industries including sportswear and aerospace [5]. - The ultra-high molecular weight polyethylene fiber project has achieved full operational capacity, with a strength range of 26cN/dtex to 42cN/dtex, placing it among the top tier in China and close to international leaders [4].