Grace(SH:603256) China Post Securities·2025-12-23 10:27Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [5][12]. Core Insights - The company is experiencing a continuous increase in the proportion of high-performance electronic fabrics, strengthening its core competitive advantages. It leads globally in the technology of ultra-thin fabrics and ultra-fine yarns, with electronic fabric products reaching a minimum thickness of 8 microns and yarn diameters as fine as 4 microns. The company has achieved breakthroughs in various high-value-added and high-functionality products, making it one of the few companies with a complete product line in the industry [3][4]. - The company is set to begin mass production of high-performance electronic fabrics in 2025, following successful customer certifications for its low dielectric constant and low thermal expansion coefficient glass fiber fabrics. The revenue from high-performance electronic fabric products is projected to grow significantly, reaching 13.54% of the main business revenue in the first half of 2025 [3][4]. - The company plans to invest in the construction of high-performance glass fiber yarn production lines and a special glass fiber research center, with total planned investments of 7.2 billion yuan and 0.92 billion yuan, respectively. This will enhance production capacity and ensure a stable supply of core raw materials for high-performance electronic fabrics [4]. Financial Projections - The company is expected to achieve revenues of 11.62 billion yuan, 15.86 billion yuan, and 21.66 billion yuan for the years 2025, 2026, and 2027, respectively. The net profit attributable to the parent company is projected to be 1.88 billion yuan, 3.02 billion yuan, and 4.74 billion yuan for the same years [5][9]. - The company's revenue growth rates are forecasted at 26.24%, 39.27%, 36.48%, and 36.54% for the years 2024, 2025, 2026, and 2027, respectively [9][14].