Core Viewpoint - The company, Anhui Jinchun Nonwoven Fabric Co., Ltd., has approved a share repurchase plan, intending to buy back shares worth between RMB 10 million and RMB 20 million at a maximum price of RMB 18 per share within 12 months [1][2]. Summary by Sections Share Repurchase Plan - The company plans to repurchase shares using its own or raised funds, with a total budget of RMB 10 million to RMB 20 million [1]. - The maximum repurchase price is set at RMB 18 per share, and the implementation period is 12 months from the board's approval date [1]. First Share Repurchase Details - The company has completed its first share repurchase, acquiring 100,000 shares, which represents 0.08% of the total share capital [2]. - The highest transaction price during this repurchase was RMB 15.32 per share, while the lowest was RMB 15.22 per share, with a total transaction amount of RMB 1,528,200 (excluding transaction fees) [2]. Compliance and Regulations - The share repurchase is in accordance with relevant laws, regulations, and the company's repurchase plan [2]. - The company will continue to implement the repurchase plan based on market conditions and will fulfill its information disclosure obligations as required by law [2].

Core Viewpoint - The company plans to repurchase its shares with a budget ranging from 10 million to 20 million RMB, indicating a strategic move to enhance shareholder value [1] Summary by Relevant Sections - **Share Repurchase Plan** - The company intends to use its own or raised funds to buy back shares, with a total budget set between 10 million RMB (1,000,000) and 20 million RMB (2,000,000) [1] - The maximum repurchase price is capped at 18 RMB per share [1] - The implementation period for the share repurchase is set for 12 months from the date of the board's approval [1]

Investment Rating - The report assigns a "Buy" rating for the company, Nobon Co., Ltd. (603238), marking its first coverage [2][8]. Core Insights - Nobon Co., Ltd. is positioned as a global leader in high-end differentiated water-jet non-woven materials, benefiting from the expanding and upgrading demand in the personal care and household cleaning market in China, alongside a golden window for new downstream products like oral tobacco [8]. - The company is expected to achieve a compound annual growth rate (CAGR) of +26% in net profit from 2025 to 2027, with projected net profits of 130 million, 157 million, and 189 million yuan respectively [6][8]. Summary by Sections 1. Company Overview - Nobon Co., Ltd. has over 20 years of experience in the water-jet non-woven fabric sector, establishing a comprehensive industrial chain that includes raw materials, products, and branding [7][17]. - The company has developed innovative products such as the "Sanlyzox" biodegradable water-jet material, becoming one of the few global companies to achieve mass production of such materials [7][24]. 2. Financial Performance and Profitability - The company is entering a phase of profitability recovery, with expected revenues of 2.24 billion yuan in 2024, a year-on-year increase of 17%, and a net profit of 95 million yuan, up 15% [6][38]. - In Q1 2025, revenues are projected to grow by 39% year-on-year, indicating a strong upward trend [6][39]. 3. Market Dynamics - The non-woven fabric market in China is experiencing a rebalancing of supply and demand, with a narrowing gap in production and consumption, leading to improved profitability for leading companies [7][70]. - The demand for non-woven products is expected to grow significantly, driven by increased hygiene awareness post-pandemic and diverse consumer needs [74]. 4. New Product Opportunities - The oral tobacco market is anticipated to see explosive growth, with the demand for high-end non-woven materials for nicotine pouches expected to rise, providing additional profit elasticity for the company [8][20]. - Nobon Co., Ltd. is well-positioned to capitalize on this trend without significant capacity constraints, as the material usage per product is minimal [8][20]. 5. Investment Analysis - The report forecasts a target market capitalization of 3.9 billion yuan for the company, representing a 37% upside from its market value as of June 3, 2025 [8]. - The company is expected to maintain a strong cash flow and improve its dividend payout ratio, reflecting its robust financial health [62].

Investment Rating - The report gives a "Buy" rating for the company with a target price of 20.90 CNY, corresponding to a PE ratio of approximately 33 times for 2025 [4][14][6]. Core Viewpoints - The company is a leading player in the domestic water-jet non-woven fabric industry, demonstrating a long-term commitment to craftsmanship. The penetration rate of water-jet non-woven fabrics is on the rise, with diverse downstream applications such as wet wipes and oral nicotine pouches showing rapid growth [12][51][67]. - The company's three main business segments—roll materials, products, and proprietary brands—are developing synergistically, with strong performance in 2024 and Q1 2025. The roll material segment is expanding its capacity for differentiated and flushable materials, while the product segment, led by Guoguang, is gradually entering high-margin clients [4][12][33]. Company Overview - Founded in 2002, the company specializes in the R&D, production, and sales of differentiated and personalized water-jet non-woven materials and products. Its products are primarily used in beauty care, industrial materials, household cleaning, and medical materials [22][23]. - The company achieved a revenue of 2.24 billion CNY in 2024, representing a year-on-year growth of 16.8%, and a net profit attributable to shareholders of 95.23 million CNY, up 15.2% year-on-year. In Q1 2025, revenue and net profit grew by 39.1% and 48.6% respectively [1][4][23]. Industry Situation - The water-jet non-woven fabric market is characterized by high demand due to its breathable, soft, lightweight, and antibacterial properties, making it suitable for disposable consumer products and beauty care markets. The production of water-jet non-woven fabrics reached 151,000 tons in 2023, with a compound annual growth rate (CAGR) of 18.6% from 2018 to 2023 [2][55]. - The Chinese wet wipes market is projected to reach 12.92 billion CNY in 2024, with a CAGR of 5.0% from 2024 to 2029, indicating significant growth potential in this segment [2][68]. Business Highlights - The roll material segment has advanced production lines and strong technical innovation capabilities, with the company being the only one in China capable of mass-producing flushable materials for the U.S. market. The company is increasing the proportion of differentiated and flushable materials in its production [3][12]. - The product segment, primarily through its subsidiary Guoguang, has a comprehensive product line for wet wipes, achieving a revenue growth of 26.6% in 2024 and over 40% in Q1 2025. Guoguang is expanding its partnerships with major retailers and acquiring new clients [3][12]. - The proprietary brand "Xiaozhijia" is rapidly growing, with a revenue increase of 80.6% year-on-year in 2024, supported by the company's technical strength [3][12]. Profit Forecast and Valuation - The company is expected to achieve revenues of 2.62 billion CNY, 3.10 billion CNY, and 3.60 billion CNY in 2025, 2026, and 2027 respectively, with year-on-year growth rates of 17.31%, 18.09%, and 16.25%. Net profits are projected to be 112 million CNY, 136 million CNY, and 163 million CNY for the same years, with growth rates of 17.61%, 21.35%, and 19.80% respectively [4][14][5].

Summary of Conference Call Company and Industry Overview - The conference call primarily discusses the non-woven fabric industry, particularly focusing on the oral tobacco segment and the company's production capabilities in this area [1][20]. Key Points and Arguments - **Market Entry Barriers**: The oral tobacco market has high entry barriers, especially in non-woven fabric production, where the company excels due to high quality [1]. - **Order Volume**: The company currently has a robust order volume, with production lines fully booked until June, indicating strong demand [2]. - **Production Capacity**: The company has five differentiated production lines and one conventional line, with approximately 35% of total capacity available for flexible production [2]. - **Profit Margins**: The profit margins for differentiated lines vary significantly, with some reaching up to 50%, while conventional lines are competitive with the market, sometimes resulting in losses [3]. - **Industry Pricing Trends**: Post-pandemic, the industry has seen an oversupply leading to price wars, affecting profitability across conventional production lines [4]. - **Future Expansion Plans**: The company plans to build a new production line over the next year to meet increasing demand, particularly at its Guoguang facility [5][11]. - **Raw Material Costs**: Fluctuations in raw material prices significantly impact profit margins, with major materials including fiber types that constitute over 90% of inputs [10]. - **Sales Distribution**: The company has a balanced sales distribution of 50% domestic and 50% international, with major clients including well-known brands in both markets [9]. - **Market Growth Outlook**: The management is optimistic about the growth of the disposable hygiene products market, projecting a double-digit growth rate over the next three years [14][27]. - **Regulatory Compliance**: Products sold in the U.S. require specific certifications, which the company is prepared to meet [25]. Additional Important Insights - **Technological Edge**: The company claims to have a leading technological position in China, particularly in producing high-quality non-woven fabrics for specialized applications [20][26]. - **Client Relationships**: The company maintains strong relationships with major clients, which is crucial for sustaining its competitive edge in the market [26]. - **Market Dynamics**: The competitive landscape remains challenging, but there are signs of stabilization in pricing as the market adjusts post-pandemic [17][18]. - **Product Development**: The company is exploring opportunities in the oral tobacco market, which has been gaining traction, although it currently represents a small revenue stream [21][22]. This summary encapsulates the key discussions and insights from the conference call, highlighting the company's strategic positioning and market dynamics within the non-woven fabric industry.