富春染织：生产规模效应逐步显现

Investment Rating - The report maintains a "Buy" rating for the company with a target price indicating an expected return of over 20% within the next six months [7][15]. Core Views - The company reported a revenue of 800 million in Q3 2024, representing a 19% year-on-year increase, while the net profit attributable to the parent company decreased by 29% to 20 million. However, the non-recurring net profit increased by 55% to 40 million [1]. - The growth in net profit for the first three quarters of 2024 is attributed to the commissioning of new projects, which have led to economies of scale and reduced production costs due to lower energy consumption [1]. - The company has developed a proprietary "full biological wastewater treatment" process, significantly lowering wastewater treatment costs and achieving stable compliance with industry standards [4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a gross margin of 13.64%, up 2.08 percentage points year-on-year, and a net margin of 4.73%, up 0.77 percentage points [1]. - The company's revenue for the first three quarters of 2024 reached 2.2 billion, a 21% increase year-on-year, with a net profit of 104 million, reflecting a 45% increase [1]. - The report projects EPS for 2024, 2025, and 2026 to be 1.1, 1.3, and 1.6 respectively, with corresponding P/E ratios of 12X, 10X, and 8X [2]. Operational Efficiency - The company employs a "warehouse-style production" model combined with a color card database, which enhances supply chain efficiency and reduces costs while improving customer service [3]. - The color card database includes nearly a thousand colors, allowing for standardized production that meets customer demands promptly [3]. Environmental Competitiveness - The company is executing wastewater treatment under indirect discharge standards, which helps in reducing costs associated with wastewater processing [1]. - The proprietary wastewater treatment technology positions the company as a leader in environmental compliance within the industry [4].