Yanjan(SZ:300658)2025-10-23 09:22Group 1: Financial Performance - In Q3 2025, the company reported a revenue of 452 million CNY and a net profit of approximately 16.66 million CNY, with revenue growth driven by the increase in sales of hot air non-woven fabric and perforated non-woven fabric, the latter seeing a sales increase of over 50% year-on-year [3] - The gross profit margin has improved due to stable domestic orders and the gradual release of production capacity from the Egyptian subsidiary, with domestic gross margins increasing and the Egyptian subsidiary's gross margin turning positive [4] - The net profit margin for both the domestic parent company and the Egyptian subsidiary has increased year-on-year, with the Egyptian subsidiary showing significant growth [7] Group 2: Product and Market Insights - The growth rate of hot air non-woven fabric is expected to be higher than that of perforated non-woven fabric, primarily due to the higher price of perforated non-woven fabric, which is used cautiously in high-end product lines [5] - The Egyptian subsidiary's hot air production line has a theoretical capacity of 12,000 tons/year, with approximately 10,000 tons already validated, and is expected to reach full capacity in the first half of next year [6] - The company’s products are primarily used in the surface layer of products like diapers and sanitary napkins, with plans to expand into the flow layer and core layer in the future [3] Group 3: Market Challenges and Opportunities - The uncertainty of U.S. tariffs has a limited impact on the company, as the U.S. subsidiary primarily produces PE perforated film and can source raw materials locally or overseas [8] - The U.S. subsidiary is currently at a breakeven point, while the Indian subsidiary remains small and has a limited overall impact on the company [7]