Zhe Jiang TaiHua New Material (603055) 山西证券·2025-03-05 10:23Investment Rating - The report assigns an investment rating of AA to the Tai 21 convertible bond (113638.SH) [1] Core Insights - The Tai 21 convertible bond is characterized by a high conversion premium of 71.26% and a pure bond premium of 6.54%, with a yield to maturity (YTM) of -0.007% [1] - The underlying stock, Taihua New Materials (603055.SH), has a total market capitalization of 9.856 billion and a TTM PE ratio of 13.3x, positioning it as a leader in the nylon production industry in China [2] - The company has established a comprehensive industrial chain in nylon production, focusing on high-end products and maintaining stable partnerships with major brands [3] - The company has demonstrated strong growth, with a revenue increase of 47.46% year-on-year and a net profit increase of 89.19% year-on-year for the first three quarters of 2024 [4] - The report suggests that the reasonable valuation for the Tai 21 convertible bond is between 121-128 yuan, assuming the underlying stock price remains unchanged [5] Summary by Sections Convertible Bond Analysis - The Tai 21 convertible bond has a total balance of 600 million yuan, accounting for 99.96% of the total issuance, with a remaining term of 2.82 years [1] - The bond is expected to enter a redemption period soon, and there is a possibility of future adjustments [4] Underlying Stock Overview - Taihua New Materials has a well-established production base across three locations in China, with a focus on differentiated nylon products [2][3] - The company is expected to benefit from the completion of its new production facilities, which will enhance its production capacity and operational efficiency [4] Financial Performance - The company is projected to achieve a net profit of 700-760 million yuan for the full year of 2024, representing a year-on-year increase of 55.86% to 69.22% [4]