NANSHAN FASHION(300918) 中泰证券·2025-03-14 04:15Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% against the benchmark index in the next 6 to 12 months [9]. Core Views - The company is positioned as a leader in the integrated woolen fabric sector, with strong growth in new materials, particularly in ultra-high molecular weight polyethylene (UHMWPE) and nylon projects, which are expected to contribute significantly to revenue in the coming years [3][6]. - The company has faced challenges in its traditional woolen fabric business due to weak performance from downstream apparel brands, but it has managed to improve gross margins through cost control and enhanced product features [5][6]. - The company is actively expanding its production capacity and exploring new markets, including a joint venture in Indonesia to enhance its apparel manufacturing capabilities [5][6]. Financial Performance Summary - For 2024, the company reported revenue of 1.616 billion yuan, a slight increase of 0.98% year-on-year, while net profit attributable to shareholders decreased by 5.82% to 191 million yuan [5]. - The revenue from the woolen fabric segment declined by 9.54% to 810 million yuan, while the apparel segment grew by 4.45% to 610 million yuan [5]. - The UHMWPE business saw a remarkable revenue increase of 94.75% to 176 million yuan, driven by the full production capacity of its second phase project [5][6]. Earnings Forecast and Valuation - The company forecasts net profits of 259 million yuan in 2025, 345 million yuan in 2026, and 442 million yuan in 2027, with corresponding P/E ratios of 25, 19, and 15 [3][6]. - The projected revenue growth rates are 43% in 2025, 25% in 2026, and 18% in 2027, indicating a robust growth trajectory [3][6]. - The report highlights the strategic framework of "traditional woolen fabric as the base, new material fibers as the wings," aiming for a collaborative development across the entire industry chain [6].