Huafon Spandex(SZ:002064) KAIYUAN SECURITIES·2025-10-27 14:41Investment Rating - The investment rating for Huafeng Chemical is maintained as "Buy" [1] Core Views - The report indicates that Huafeng Chemical demonstrates resilience in performance at the bottom of the cycle, with the spandex industry potentially approaching a turning point [5] - For the first three quarters of 2025, the company achieved revenue of 18.109 billion yuan, a year-on-year decrease of 11.11%, and a net profit attributable to shareholders of 1.462 billion yuan, down 27.45% year-on-year [5] - The average price of adipic acid in Q3 2025 was 7,063 yuan/ton, down 2.38% quarter-on-quarter and down 20.48% year-on-year, indicating a challenging pricing environment [6] - The report forecasts a gradual recovery in the spandex industry as outdated production capacity exits the market, which is expected to benefit the company significantly [7] Financial Summary - Revenue for 2025 is projected to be 25.578 billion yuan, with a year-on-year decline of 5.0% [9] - The estimated net profit for 2025 is 1.921 billion yuan, reflecting a year-on-year decrease of 13.5% [9] - The earnings per share (EPS) for 2025 is expected to be 0.39 yuan, with a corresponding price-to-earnings (P/E) ratio of 22.8 times [9] - The gross margin is projected to be 13.1% in 2025, with a net margin of 7.5% [9] Industry Insights - The spandex industry has been experiencing negative gross margins for over two years, with significant production capacity being phased out [7] - The report highlights that the exit of outdated production capacity is accelerating, which may lead to a recovery in the industry [7] - The average price difference for spandex in Q3 2025 was 10,604 yuan/ton, indicating a challenging market environment but with potential for improvement as the cycle turns [6]