Hangzhou Juheshun New Material (SH:605166) Guohai Securities·2025-09-08 14:02Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's nylon chip production and sales volume increased year-on-year, but the net profit attributable to the parent company faced short-term pressure in the first half of 2025 [2][3] - The company is focusing on the high-end nylon market, with ongoing capacity expansion projects expected to contribute to performance growth as downstream demand gradually recovers [9][10] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 3.03 billion yuan, a decrease of 13.87% year-on-year. The revenue breakdown shows fiber-grade chips at 1.99 billion yuan (down 16.03%), engineering plastic-grade chips at 928 million yuan (down 16.08%), and film-grade chips at 101 million yuan (up 168.51%) [2] - The company's net profit attributable to the parent company for the first half of 2025 was 111 million yuan, down 27.60% year-on-year [3] - The company reported a significant increase in cash flow from operating activities, with a net cash flow of 115 million yuan, up 94.60% year-on-year [3] Market Performance - As of September 5, 2025, the company's stock price was 12.40 yuan, with a market capitalization of approximately 3.90 billion yuan. The stock has outperformed the CSI 300 index over the past 12 months, with a return of 34.2% compared to the index's 36.9% [5] Capacity Expansion and Market Demand - The company is advancing its capacity construction, with multiple projects underway, including a 92,000-ton technical transformation project expected to begin trial production within the year [8] - The domestic nylon chip market is expected to grow due to increased demand for high-end materials in various industries, including textiles, automotive, and electronics [9]