Yanjan(SZ:300658) Tianfeng Securities·2025-10-26 05:11Investment Rating - The report initiates coverage with a "Buy" rating for the company [5][6]. Core Views - The company is positioned to benefit from the global upgrade of disposable hygiene materials, leveraging its international production capacity and strong customer relationships to achieve sustainable growth [2][3][5]. - The company has demonstrated significant revenue growth, with projected revenues of 1.48 billion yuan in 2024, representing an 18% year-on-year increase, and a net profit of 27.28 million yuan, reflecting a 30.7% increase [2][5]. - The company is focusing on expanding its high-margin product lines, particularly in the hot air non-woven fabric segment, which is expected to see a compound annual growth rate (CAGR) of 28% from 2020 to 2024 [2][22]. Summary by Sections Global Market Position - The company specializes in the research, production, and sales of disposable hygiene materials, with a strong presence in four countries and ten production bases globally [1][13]. - It has established itself as one of the few suppliers in the high-end product segment of disposable hygiene materials in China [1][13]. Revenue and Profitability Outlook - The company is expected to achieve revenues of 1.48 billion yuan in 2024, with a year-on-year growth of 18%, and a net profit of 27.28 million yuan, up 30.7% [2][21]. - For the first half of 2025, the company anticipates revenues of 840 million yuan, a 26.7% increase year-on-year, driven by successful overseas operations and strategic customer partnerships [2][21]. Product Development and Market Trends - The hot air non-woven fabric segment is gaining traction, with sales expected to grow significantly as it replaces traditional materials in the market [3][22]. - The company has a strong focus on R&D, holding numerous patents and continuously improving its product offerings to meet market demands [31][32]. International Expansion and Customer Relationships - The company has made significant strides in international markets, with production facilities in Egypt, the USA, and India, enhancing its ability to serve global customers [4][21]. - Long-term partnerships with major clients have solidified the company's position as a key supplier in the hygiene products sector, allowing it to better understand market trends and customer needs [35][36]. Market Potential for Hygiene Products - The market for absorbent hygiene products is substantial, with an estimated size of over 1 trillion yuan in 2023, showing a recovery in demand across various segments [38][39]. - The company is well-positioned to capitalize on the growing demand for innovative hygiene products, particularly in the women's hygiene and adult incontinence segments [39][42].