Huading Nylon(601113) 民生证券·2025-05-15 12:25Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Views - The company is a leading player in the differentiated and functional nylon filament industry, focusing on high-quality consumer nylon fibers. It has a designed production capacity of 406,000 tons for nylon 6 and 6,000 tons for nylon 66 by the end of 2024 [1][18]. - The company has undergone significant restructuring, divesting its e-commerce business to concentrate on its core nylon filament operations, which is expected to enhance its growth potential [3][4]. Summary by Sections 1. Company Overview - The company is recognized as a leading manufacturer of differentiated and functional nylon filaments in China, with a comprehensive product line and a focus on high-end markets [1][13]. - The company has made strategic acquisitions to enhance its production capabilities and market position, including the purchase of assets related to nylon fiber production [3][10]. 2. Nylon Fiber Market - The nylon fiber market is characterized by strong demand due to its excellent properties such as strength and dyeability, with a projected production capacity of 3.829 million tons and a demand of 2.8145 million tons in 2024 [2][19]. - The price difference between nylon 6-POY and its raw material has reached 1,750 CNY/ton, indicating a favorable pricing environment for the company [2][19]. 3. Strategic Focus - The company has shifted its focus back to its core nylon filament business after divesting its e-commerce operations, which is expected to streamline operations and improve profitability [3][4]. - The company plans to expand its production capacity significantly, with new projects expected to be completed by 2026, 2029, and 2030 [1][18]. 4. Financial Forecast and Valuation - The company is projected to achieve net profits of 453 million CNY, 537 million CNY, and 579 million CNY from 2025 to 2027, with corresponding PE ratios of 10X, 9X, and 8X [4][5]. - The revenue for 2024 is expected to be 7.521 billion CNY, with a year-over-year decrease of 13.73%, while the net profit is anticipated to grow by 206.27% to 489 million CNY [5][30].