Investment Rating - The report assigns a rating of "Accumulate" for the company [1]. Core Views - The company is expected to see significant growth in nylon filament sales, with a strong performance in fabric and cloth sales. The first quarter of 2025 shows a slight increase in nylon volume, supported by government subsidies that enhance profits. The renewable project is anticipated to ramp up in 2025, gradually contributing to performance growth [2][11]. Financial Summary - **Revenue**: - 2023A: 5,094 million - 2024A: 7,120 million (up 39.8%) - 2025E: 8,583 million (up 20.5%) - 2026E: 9,814 million (up 14.3%) - 2027E: 10,721 million (up 9.2%) [4] - **Net Profit (attributable to parent)**: - 2023A: 449 million - 2024A: 726 million (up 61.6%) - 2025E: 899 million (up 23.8%) - 2026E: 1,064 million (up 18.4%) - 2027E: 1,207 million (up 13.5%) [4] - **Earnings Per Share (EPS)**: - 2023A: 0.50 - 2024A: 0.82 - 2025E: 1.01 - 2026E: 1.19 - 2027E: 1.36 [4] - **Return on Equity (ROE)**: - 2023A: 10.1% - 2024A: 14.5% - 2025E: 15.7% - 2026E: 16.2% - 2027E: 16.0% [4] Market Data - **52-week stock price range**: 9.09 - 13.10 [6] - **Total market capitalization**: 8,476 million [6] - **Total shares outstanding**: 890 million [6] Investment Recommendation - The report forecasts that the company will achieve an EPS of 1.01, 1.19, and 1.36 for the years 2025 to 2027, respectively. Given that the company is a leader in the nylon industry, a target price of 14.14 is set based on an industry average PE of 14 for 2025, maintaining the "Accumulate" rating [11].

Core Viewpoint - The company is expected to see significant growth in nylon filament sales in 2024, with a positive outlook for fabric and cloth sales, while facing challenges in Q1 2025 due to reduced volume and increased government subsidies enhancing profits [1][2]. Financial Performance - In 2024, the company reported revenue of 7.12 billion yuan, a year-on-year increase of 39.78%, and a net profit attributable to shareholders of 726 million yuan, up 61.59% [2]. - Q4 2024 revenue reached 1.935 billion yuan, a 22.65% increase year-on-year, but net profit decreased by 12.31% to 107 million yuan [2]. - In Q1 2025, revenue was 1.478 billion yuan, a slight increase of 0.38%, with net profit rising 8.92% to 163 million yuan [2][3]. Segment Performance - Nylon filament revenue was 3.95 billion yuan in 2024, up 50.5%, driven mainly by volume growth, with a gross margin increase of 1.6 percentage points [3]. - Fabric revenue was 1.6 billion yuan, a 41.3% increase, with a 25% volume increase in nylon fabric and a gross margin increase of 3.2 percentage points [3]. - Grey cloth revenue was 1.34 billion yuan, up 11.5%, with a gross margin increase of 1.8 percentage points [3]. Market Dynamics - In Q1 2025, nylon product sales volume increased while prices decreased, with the average selling price of nylon filament around 21,000 yuan per ton, down approximately 8.5% year-on-year [3]. - The company received government subsidies of 71 million yuan in Q1 2025, an increase of 46 million yuan year-on-year, which helped bolster profits despite pressure on net profit margins [3]. Future Outlook - The company anticipates that its new recycling project will gradually contribute to performance growth, with a target of 20,000 tons of new capacity ramping up [3]. - The establishment of a factory in Vietnam is expected to strengthen the company's competitive position and enhance order acquisition, with an increasing proportion of high-value-added orders [3].