Sinoma Science & Technology (SZ:002080) SINOLINK SECURITIES·2025-10-22 01:11Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits for 2025-2027 at 2.002 billion, 2.608 billion, and 3.060 billion RMB respectively, corresponding to dynamic PE ratios of 27x, 20x, and 17x [5]. Core Insights - The company reported a revenue of 21.7 billion RMB for the first three quarters of 2025, representing a year-on-year increase of 29%. The net profit attributable to the parent company reached 1.48 billion RMB, up 143% year-on-year, while the net profit excluding non-recurring items was 1.197 billion RMB, marking a 270% increase [2]. - In Q3 2025, the company achieved a revenue of 8.369 billion RMB, a 33% increase year-on-year, with a net profit of 481 million RMB, up 235% year-on-year, and a net profit excluding non-recurring items of 389 million RMB, reflecting a 334% increase [2]. - The traditional fiberglass segment is showing resilience, with a trend of inventory reduction in the industry. The average price for winding direct yarn in Q3 2025 was 3,568 RMB/ton, down 3% year-on-year and 5% quarter-on-quarter. The industry inventory at the end of Q3 was 865,000 tons, a decrease of 23,000 tons from Q2 [3]. - The company is accelerating the expansion of its special fiberglass projects, having achieved sales of 8.95 million meters of special fiber cloth in H1 2025. It is now the only domestic supplier and the second globally capable of large-scale production of low-expansion cloth, breaking the foreign monopoly [4]. Summary by Sections Performance Review - For the first three quarters of 2025, the company reported a total revenue of 21.7 billion RMB, a 29% increase year-on-year, and a net profit of 1.48 billion RMB, which is a 143% increase year-on-year. The net profit excluding non-recurring items was 1.197 billion RMB, reflecting a 270% increase [2]. Operational Analysis - The traditional fiberglass sector is experiencing a recovery, with a notable reduction in industry inventory. The average price for winding direct yarn decreased slightly, while the industry is moving towards a reduction in inventory levels [3]. - The company is positioned as a leader in the special fiberglass market, with significant advancements in product offerings and market penetration, particularly in low-expansion and ultra-low-loss low dielectric cloths [4]. Financial Forecast and Valuation - The projected net profits for the company from 2025 to 2027 are 2.002 billion, 2.608 billion, and 3.060 billion RMB, with corresponding dynamic PE ratios of 27x, 20x, and 17x, indicating a strong growth outlook [5].