Core Viewpoint - The company maintains a "buy" rating due to significant recovery in the price spread of polyester industrial yarn and positive performance from its Vietnam operations [1][2]. Summary by Sections Investment Highlights - The company maintains a "buy" rating, projecting EPS for 2025, 2026, and newly added 2027 to be 0.44, 0.47, and 0.52 yuan respectively [2]. - The target price has been raised to 6.59 yuan from the previous 4.61 yuan, based on a 15 times PE ratio for 2025 [2]. - The average price of polyester industrial yarn reached 8400 yuan/ton as of May 23, reflecting a month-on-month increase of 2.44% [2]. - The gross profit for polyester industrial yarn in April was 538 yuan/ton, a year-on-year increase of 185.46%, with a gross margin of 6.15%, marking the highest monthly gross profit in the past year [2]. - The company holds a significant market share and brand influence in the polyester filament industry, with a production capacity of 320,000 tons expected in 2024, benefiting from the recovery in product price spreads [2]. - The company’s polyester filament products include non-automotive yarns and automotive yarns, with the latter being recognized for their superior performance compared to domestic peers [2]. Vietnam Operations - The Vietnam subsidiary is operating at full capacity, projecting a net profit of 100 million yuan for 2024 [3]. - In Q1 2025, the sales structure of the Vietnam subsidiary improved, leading to a significant increase in profitability compared to the same period last year [3]. - The company aims to leverage the "Belt and Road" initiative to enhance its "technology + capacity + market" strategy, focusing on global expansion to mitigate external risks and capture high-end market opportunities [3]. - The construction of a high-performance tire cord fabric project with an annual capacity of 18,000 tons in Vietnam is progressing smoothly [3]. Product Development - The company is committed to developing new products based on customer needs, aiming for industry-leading innovations [3]. - The company has established production capabilities for LCP fibers, while PEEK fibers are in the sample testing phase, targeting applications in environmental materials and clean energy [3]. - The company's seawater polyester industrial yarn products are widely used in marine applications and have passed ABS testing certification [3].

Market Overview - On May 15, the Shanghai Composite Index fell by 0.68% to 3380 points, while the Shenzhen Component Index dropped by 1.62% and the ChiNext Index decreased by 1.92%. Over 3800 stocks in the market declined [1] Stock Performance - Notable gainers included companies in the beauty care, cosmetics, pet economy, food and beverage, and dairy sectors, while Tencent Cloud and state-owned cloud concepts saw declines [1] - Stocks with significant increases included: - *ST Da with a rise of 45.07% to 4.56, supported by chemical sector and shareholder increase [2] - *ST Yanzhen with a 4.99% increase to 9.04, driven by revenue growth in Q1 [2] - Chengfei Integration with a 10.01% rise to 32.63, linked to military and automotive parts sectors [2][20] Trading Dynamics - The top three stocks by net buying on the trading board were: - Yuzhongxia A with a net buy of 99.27 million [5] - Tongda Co. with a net buy of 84.30 million [5] - Chengfei Integration with a net buy of 83.13 million [5] - The top three stocks by net selling were: - Xiangyang Bearing with a net sell of 193 million [6] - Zhongyida with a net sell of 183 million [6] - Cross-border Communication with a net sell of 165 million [6] Company Highlights - Chengfei Integration focuses on automotive parts and tooling, with a significant portion of its revenue from these sectors [20] - The company has established a long-term strategic partnership with Chengfei Group, recognized as a core strategic supplier [20][21] - The company is expanding its lightweight automotive parts business, with projects already in mass production [20] Sector Insights - The textile sector saw notable activity, with Suzhou Longjie and Yingfeng Co. both recording significant gains [11][12] - The chemical fiber industry is experiencing growth, with companies like Jilin Chemical Fiber showing strong performance [4][22] Investment Trends - Institutional investors showed interest in stocks like Yuzhongxia A and Chengfei Integration, indicating potential confidence in these companies [5][27] - The trading volume and turnover rates for several stocks suggest active trading and investor engagement in the market [4][22]