Hangzhou Juheshun New Material (SH:605166) Haitong Securities·2024-04-01 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [13][24]. Core Views - The company is actively advancing new project constructions, developing new products, and optimizing product structures. The R&D center is progressing well, with nylon 66 and copolymer products already launched and recognized in the market. The convertible bond project for an annual production of 180,000 tons of polyamide 6 new materials is in trial operation, and expansion projects are underway [23][24]. - The company expects improvements in product prices and gross margins due to the recovery of domestic demand, with average prices for nylon 6 slices projected at 12,700 CNY/ton for 2024-2026 [25]. Financial Performance - In 2023, the company achieved operating revenue of 6,018 million CNY, a slight decrease of 0.31% year-on-year, and a net profit attributable to shareholders of 197 million CNY, down 18.78% year-on-year [15][23]. - The forecast for 2024-2026 indicates expected EPS of 0.80, 1.00, and 1.21 CNY, with a reasonable valuation range of 10.40-12.80 CNY based on a PE ratio of 13-16 times [24][18]. - The gross margin for 2023 was 6.7%, with projections for 2024-2026 to improve to 7.1%, 7.5%, and 7.9% respectively [18][8]. Product Performance - The revenue from nylon slice products in 2023 was 6,013.98 million CNY, with a slight decrease of 0.30% year-on-year. The sales volume increased by 6.04% to 477,800 tons, while the price decreased by 5.98% to 12,600 CNY/ton [6][10]. - The company has established a strong production and R&D team, utilizing advanced German manufacturing technology for nylon 6 slice production, which supports high-standard product manufacturing at lower operational costs [7][6].