NBOND(SH:603238) Changjiang Securities·2026-03-30 05:45Investment Rating - The report assigns a "Buy" rating for Nobon Co., Ltd. (603238.SH) with a first-time coverage [8][10]. Core Insights - The report highlights that the non-woven fabric industry in China is expected to see a production increase of 5.1% in 2024, marking the largest growth since 2020, driven by a recovery in demand and an increase in export share [3][17]. - Nobon Co., Ltd. specializes in differentiated and personalized water-jet non-woven fabric rolls and products, with a focus on high-end materials and strong technical capabilities, particularly in its core product "Sanlyzox," which meets global standards for dispersibility [5][26]. - The company is positioned for dual growth through its integrated supply chain and brand cultivation, with a projected revenue of 2.24 billion yuan and a net profit of 95 million yuan in 2024 [5][8]. Industry Overview - The non-woven fabric industry is experiencing a structural recovery, with the production of water-jet non-woven fabrics expected to grow by 8.1% in 2024, driven by increased demand for personal care products [6][54]. - The market for high-end materials, particularly in the personal care sector, is expanding, with a notable increase in the penetration of disposable cleaning products [7][50]. - The competitive landscape is characterized by a low concentration of players, with over 85% of companies being small to medium-sized, primarily competing in low-end, homogeneous products [47][48]. Company Performance - Nobon Co., Ltd. is expected to achieve a compound annual growth rate (CAGR) of 17.5% in product revenue from 2019 to 2024, supported by its strong client base and production capabilities [7][36]. - The company's roll materials are projected to contribute 31.7% of total revenue in 2024, while products will account for 67.5%, with a gross profit margin of 21.8% for rolls and 11.3% for products [5][28]. - Nobon has a clear shareholding structure, with the chairman holding 46.4% of the shares, ensuring stable management and strategic execution [5][39].