SMIC(600810) 国泰君安·2024-04-11 16:00Investment Rating - The report initiates coverage with a rating of "Accumulate" for the company, indicating a positive outlook based on its market position and growth potential [35][43]. Core Insights - The company is a leading player in the nylon 66 industry, with continuous improvements in its supply chain and production capabilities. It is expected to benefit from the domestic production of key raw materials, particularly adiponitrile, which will enhance its production capacity and market competitiveness [43][59]. - The demand for nylon 66 is anticipated to grow due to its superior performance and applications in various sectors, including automotive lightweighting and tire manufacturing. The expansion of domestic tire manufacturers is expected to further drive the demand for nylon 66 products [20][59]. - The company is actively expanding its product offerings in specialty nylon and consumer-grade products, which are expected to open new growth avenues [44]. Summary by Sections 1. Investment Recommendations - The company is projected to have EPS of 0.39, 0.57, and 0.70 for the years 2024 to 2026, respectively. The target price for 2024 is set at 9.84, corresponding to a PE ratio of 25.23 and a PB ratio of 1.27 [43][53]. 2. Industry Leadership - The company is recognized as a leader in the nylon 66 sector, with a strong brand presence and a stable management framework due to its state-owned enterprise status [49][57]. 3. Supply Chain and Production - The company is enhancing its upstream supply chain by establishing a hydrogen ammonia project and a 50,000-ton adiponitrile production facility expected to commence operations by the end of 2024. This will enable self-sufficiency in key raw materials [44][59]. 4. Market Expansion - The company is pursuing international expansion, with plans to build a 20,000-ton/year differentiated nylon fiber project in Thailand to meet the growing demands of the Southeast Asian and North American tire manufacturing markets [44][59]. 5. Financial Performance - The company reported a revenue of 12,919 million in 2023, with projections of 13,832 million for 2024, indicating a recovery trend after a decline in 2023 [53][54].