Zhejiang Xidamen New Material (SH:605155) Orient Securities·2025-05-29 11:42Investment Rating - The industry investment rating is maintained as "Positive" [6] Core Viewpoints - The overseas shading fabric market is large, and domestic companies are accelerating their international expansion, with market share expected to continue increasing. Some domestic shading material companies have also expanded into overseas shading finished product businesses, primarily through cross-border e-commerce, achieving significant results [4][9] - The dual-driven strategy of shading fabrics and finished products is recommended, focusing on companies with potential for profit improvement, such as industry leader Xidamen (605155, Buy) [4] Summary by Relevant Sections - Market Dynamics: The cross-border e-commerce business has become an important expansion direction for functional shading material companies. For instance, Xidamen has actively developed overseas cross-border e-commerce business through platforms like Amazon, accelerating brand internationalization and establishing overseas warehouses in regions like the US and Australia [9] - Financial Performance: In 2024, Xidamen's finished product business achieved revenue of 320 million yuan, a year-on-year increase of 119.7%, primarily driven by cross-border e-commerce. Additionally, this business segment maintained a gross profit margin of 48.7%, up by 2.0 percentage points year-on-year [9] - Tax Adjustments: The reduction of the small package tax rate from 120% to 54% significantly alleviates the pressure on cross-border e-commerce merchants. The US market remains the largest consumer market for shading finished products, and while increased tariffs may impact operational costs, companies can partially transfer costs through price adjustments. The recent tax reduction is expected to help maintain the competitiveness of Chinese shading finished product companies [9] - Growth Potential: The overseas shading fabric market is mature and large enough, with domestic companies having manufacturing advantages. As international expansion accelerates, market share is expected to continue growing, leading to stable growth in the shading fabric business. Additionally, some companies are beginning to focus on overseas sales of shading finished products through online platforms targeting the European and American markets, showing significant potential for future growth [9]