Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future growth and profitability [3][7]. Core Insights - The company is positioned as a global innovative manufacturer of disposable materials, focusing on the personal care sector, with significant growth potential driven by the upgrade of hygiene materials in overseas markets [6][7]. - The company has established strong relationships with major clients, which enhances its market position and revenue stability [6][28]. - The financial projections indicate a substantial increase in net profit, with a CAGR of +94% expected from 2025 to 2027, reflecting the anticipated growth in demand for its products [7][9]. Financial Data and Profit Forecast - Total revenue is projected to grow from 1,485 million yuan in 2024 to 2,700 million yuan in 2027, with a compound annual growth rate (CAGR) of 19.3% [2]. - The net profit attributable to the parent company is expected to rise from 27 million yuan in 2024 to 198 million yuan in 2027, with a significant increase of 119.6% in 2025 [2]. - The earnings per share (EPS) is forecasted to increase from 0.08 yuan in 2024 to 0.60 yuan in 2027 [2]. Business Model and Competitive Advantage - The company has a leading position in the production of functional materials for hygiene products, with a focus on innovative product development [16][26]. - It has a strong R&D platform and a global supply chain, which are key competitive advantages that allow it to meet the demands of international hygiene product giants [6][7]. - The company’s unique three-dimensional perforated non-woven fabric technology creates a significant technical barrier, enhancing product value and profitability [6][7]. Market Opportunities - The report highlights a substantial market opportunity in the overseas hygiene materials sector, estimating a replacement market size exceeding 50 billion yuan for hot air non-woven fabrics [6][7]. - The company is expected to benefit from the ongoing restructuring of supply chains by international giants, which will likely lead to increased orders and revenue [6][7]. Financial Quality and Growth Potential - The financial statements indicate a typical pattern of "capacity expansion first, order fulfillment later," suggesting that as production capacity ramps up, profitability will improve [6][9]. - The report anticipates a turning point in financial quality, with expectations of improved profit margins as operational efficiencies are realized [6][9].