Huading Nylon(601113) 民生证券·2025-05-15 08:35Investment Rating - The report initiates coverage with a "Buy" rating for Huading Co., Ltd. [4][6] Core Views - Huading Co., Ltd. is a leading enterprise in the domestic differentiated and functional nylon filament industry, focusing on high-quality consumer nylon fibers. The company has a designed production capacity of 406,000 tons for nylon 6 and 6,000 tons for nylon 66 by the end of 2024. It is also expanding its capacity with several projects scheduled for completion between 2026 and 2030 [1][2][3][18]. - The company has undergone significant restructuring, focusing on its core nylon business while divesting from its e-commerce operations. This strategic shift is expected to enhance its growth potential and operational efficiency [3][4][30]. Summary by Sections 1. Company Overview - Huading Co., Ltd. is recognized as a leading manufacturer of differentiated nylon filaments in China, with a diverse product line that includes various functional nylon fibers. The company has made strategic acquisitions to strengthen its market position and enhance its production capabilities [1][13][14]. 2. Nylon Fiber Market - The nylon fiber market is characterized by strong demand due to its excellent properties such as strength and dyeability. The industry is expected to see continued growth driven by consumer demand for products like sun-protective clothing. The production capacity and utilization rates in the industry have improved significantly, indicating a favorable market environment [2][19][20]. 3. Strategic Focus and Restructuring - The company has strategically focused on its core nylon business by acquiring relevant assets and divesting from non-core e-commerce operations. This restructuring is aimed at consolidating its market position and enhancing operational efficiency [3][4][30]. 4. Financial Forecast and Investment Recommendations - The financial projections for Huading Co., Ltd. indicate a positive outlook, with expected net profits of 453 million, 537 million, and 579 million yuan for 2025, 2026, and 2027, respectively. The report suggests that the company's performance will benefit from industry growth and capacity expansion [4][5][30].