XfmGroup(SH:603225) EBSCN·2025-07-18 08:15Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company is actively investing in strategic emerging industries while consolidating its traditional business, specifically by investing 100 million RMB in Lif Biotechnology, aiming to enter the high-end bio-based fiber sector [2][3]. - Lif Biotechnology is recognized as a leader in the domestic FDCA (Furan-2,5-dicarboxylic acid) industry, with plans to establish the world's first 10,000-ton FDCA production line by 2025, which is expected to significantly reduce the price of FDCA in the coming years [3]. - The downstream applications of FDCA are extensive, with PEF (polyethylene furanoate) showing superior performance compared to PET (polyethylene terephthalate) in various properties, making it suitable for a wide range of industries including packaging, electronics, automotive, and construction [4]. Financial Forecasts and Valuation - The company has adjusted its profit forecasts for 2025-2026, with expected net profits of 1.466 billion RMB (down 28%), 1.882 billion RMB (down 22%), and 2.207 billion RMB for 2027, translating to EPS of 0.96, 1.23, and 1.45 RMB respectively [4][6]. - The company is expected to maintain its leading position in the polyester market, with increasing market share as polyester production capacity expands [4].