Overview - Thermoplastic Polyurethanes (TPU) are high-performance polymer materials made from MDI, TDI, and polyols, known for their excellent elasticity and durability [2][8] - The TPU market is experiencing stable growth in traditional applications such as footwear, films, sealing materials, and hoses, driven by increasing consumer demands for performance and comfort [1][16] Industry Development - The TPU industry in China has evolved significantly since its introduction in the 1980s, with rapid advancements in technology and production capabilities leading to a substantial market presence [8][10] - By 2024, China's TPU consumption is projected to reach 720,000 tons, with production capacity expected to hit 1.5 million tons, resulting in a capacity utilization rate of approximately 59.7% [1][16] Market Applications - Footwear remains the largest consumption market for TPU in China, accounting for nearly 30% of the total market, with the shoe industry experiencing a market size of 531.12 billion yuan in 2023, growing by 7.9% year-on-year [14][16] - Emerging applications for TPU are expanding into areas such as 3D printing, smart wearables, and medical devices, driven by its flexibility and biocompatibility [1][16] Competitive Landscape - The TPU market in China is characterized by a "two super, many strong" competitive structure, with Wanhua Chemical and Huafeng Group as the leading players [19] - Wanhua Chemical is the largest TPU producer in China, with a revenue of 182.1 billion yuan in 2024, where polyurethane products contribute 41.65% of total revenue [21] - Other notable companies include Meirui New Materials and Shanghai Huide Technology, which focus on TPU R&D and production, contributing to the competitive landscape [23] Future Trends - The TPU market is expected to maintain a loose supply with a slowdown in expansion speed, while competition intensifies, leading to increased market concentration [25] - There is a growing emphasis on environmentally friendly TPU products, such as bio-based and biodegradable TPUs, alongside advancements in multifunctional applications through nanotechnology and composite materials [25]

Core Viewpoint - The stock price of Shanghai Huide Technology Co., Ltd. has experienced significant fluctuations, with a cumulative increase of 48.06% from May 20 to May 26, 2025, leading to a warning about potential investment risks due to abnormal trading behavior [2][5]. Stock Trading Abnormalities - The stock price showed a cumulative increase of 48.06% during the period from May 20 to May 26, 2025, with four days closing at the daily limit price [2][5]. - The stock's dynamic price-to-earnings ratio is 47.28 times, while the rolling price-to-earnings ratio is 28.31 times, significantly higher than the average rolling price-to-earnings ratio of 16.73 times for the polyurethane industry [2][5]. Company Performance - In 2024, the company achieved operating revenue of 2,670,922,867.59 yuan, a year-on-year decrease of 1.51% [2][5]. - For the first quarter of 2025, the company reported operating revenue of 610,698,265.88 yuan, reflecting a year-on-year decline of 8.92% [2][5]. Business Operations - The company specializes in the research, production, and sales of polyurethane resin products, with no significant changes in its main business operations [5]. - The company’s subsidiary, Jiangsu Huide New Materials Co., Ltd., is in the process of constructing a project with an annual production capacity of 600,000 tons of polyurethane new materials, currently in the administrative approval stage [3][5]. Risk Factors - The company acknowledges potential risks related to the new production capacity project, which may not yield expected benefits due to market demand fluctuations and increased competition [3][5]. - The company has confirmed that there are no undisclosed significant matters that could affect stock trading prices [4][6].

Core Viewpoint - The stock of Huide Technology has experienced a significant increase of 48.06% from May 20 to May 26, indicating high volatility and a valuation above industry levels [1] Company Overview - Huide Technology specializes in the research, production, sales, and technical services of polyurethane resin products, with key products including polyurethane (PU) slurry for synthetic leather, polyurethane elastomer raw materials, thermoplastic polyurethane elastomers (TPU), polyester polyols, and polyurethane materials for new energy batteries [1] - The main application areas for these products are automotive interiors, furniture, textiles, footwear, packaging, and electronic materials [1] Project Development - The wholly-owned subsidiary, Jiangsu Huide New Materials Co., Ltd., is responsible for the "Annual Production of 600,000 Tons of Polyurethane New Materials Project," which has secured construction land and is currently in the administrative approval stage [1] - Substantial construction has not yet commenced, and the project is not expected to significantly impact the company's capacity and daily operations in the short term [1]

Core Viewpoint - The company, Huide Technology, reported a slight decline in revenue for 2024, but significant growth in net profit, indicating a strong operational performance despite market challenges [10][12]. Company Overview - Huide Technology specializes in the research, production, and sales of polyurethane materials, which are widely used in various industries including automotive, electronics, and construction [4][5]. - The company operates production facilities in Shanghai, Fujian, and Zhejiang, with a focus on direct sales to customers in economically developed regions [5][6]. Financial Performance - In 2024, the company achieved operating revenue of 2.67 billion yuan, a decrease of 1.51% year-on-year, while the main business revenue grew by 1.17% to 2.55 billion yuan [10]. - The net profit attributable to shareholders reached 124.56 million yuan, marking a substantial increase of 95% compared to the previous year [10][12]. - The gross profit margin for the main business improved to 14.24%, an increase of 2.89 percentage points year-on-year [10]. Product and Market Dynamics - The demand for traditional polyurethane applications, such as footwear and apparel, has declined, while new markets like automotive interiors and eco-friendly products are experiencing growth [5][6]. - The company reported a 39.88% increase in sales volume for elastic body and raw liquid products, reaching 21,300 tons in 2024, driven by the recognition of its thermoplastic polyurethane (TPU) products [7][10]. - The polyester polyol business also saw an 11.94% increase in sales volume, totaling 34,500 tons, attributed to the company's R&D capabilities and product optimization [7][10]. Dividend Distribution - The company plans to distribute a cash dividend of 3.75 yuan per 10 shares (including tax) for the 2024 fiscal year, with a total payout amounting to approximately 52.93 million yuan, representing 42.50% of the net profit [3][10][12]. Strategic Initiatives - The company is focusing on product innovation and supply chain integration to enhance competitiveness in the polyurethane industry, which is expected to become more intense [4][6]. - New business areas, such as polyurethane components for new energy batteries and adhesive products for automotive interiors, are developing healthily, with 26 new large customers acquired during the reporting period [8][10].