Investment Rating - The report maintains a "Buy" rating for Taihe New Materials [4] Core Views - The company's performance is under short-term pressure due to low prices of spandex and aramid, but there is potential in the industrialization process of aramid-coated membranes [2][9] - The company is expected to see revenue growth from 2025 to 2027, with projected revenues of 44.16 billion, 53.44 billion, and 63.32 billion yuan respectively, reflecting year-on-year growth rates of 12.4%, 21.0%, and 18.5% [10] Financial Summary - Revenue for 2023 is projected at 39.25 billion yuan, with a slight increase to 39.29 billion yuan in 2024, followed by a significant rise to 44.16 billion yuan in 2025 [11] - The net profit attributable to the parent company is expected to decline to 0.73 billion yuan in 2025, before recovering to 2.17 billion yuan in 2026 and 3.23 billion yuan in 2027, with corresponding year-on-year changes of -18.8%, 198.9%, and 48.5% [10] - The company's return on equity (ROE) is projected to improve from 0.6% in 2025 to 2.3% in 2027 [11] Market and Product Insights - The spandex industry is experiencing continuous capacity expansion, leading to an imbalance in supply and demand, which has resulted in a price decline of approximately 17.82% for spandex in the first half of 2025 [2][3] - The aramid industry is facing increased competition due to new capacity releases and weakened demand in traditional industrial sectors, causing significant price drops and narrowing profit margins [3] - The company is making progress in the promotion of its aramid paper and aramid-coated membrane products, with successful applications in various high-value sectors such as new energy vehicles and aerospace [9]