23Q2 income increased by 10.8% in 330 million, net profit returned to mother increased by 26.8% in half-yearly report, 23Q2 income increased by 10.8% in 330 million, net profit in return to mother increased by 26.8% in 630 million, net profit in mother increased by 22.3% in 630 million, and net profit in return to mother increased by 20.9% in 140 million. In recent years, the company continues to develop a complete set of process solutions such as high-quality nylon 6swap 66 spinning, recycled nylon and food-grade recycled polyester, which has achieved good marketing results, and the direction of new technology research and development is in line with the new consumption concept. Lay a good foundation for performance growth.

Revenue from sub-business, new materials and synthetic materials solutions increased by 4% in 370 million, accounting for 59% of the total; revenue from recycled materials and degradable materials solutions increased by 71.6%, accounting for 35% of the total; and revenue from industrial AI integrated application solutions increased by 53.5% in 30 million, accounting for 5% of the total.

The gross profit margin of 23Q2 increased by 39.1%, the gross profit margin of 2.9pct23Q2 increased by 39.1%, the gross profit margin of 2.9pct23Q2 increased by 38.7%, and the gross profit margin of 2.3pct increased by 38.7%. Sub-business, gross profit margin of new materials and synthetic materials solutions is 41.4% with increase of 9.5pct, gross profit margin of recycled materials and degradable materials solutions is 28.1% with minus 11.8pct, gross profit margin of industrial AI integrated application solutions is 53.5% with minus 7.7pct.

23Q2 Company's homing net interest rate is 22.6% and 2.9pct25H1 net interest rate is 22.8% and minus 0.3pct The overall rate for the period is the same as minus 1.5pct, of which the sales / management / R & D / financial rates are 1.4% (yoy+0.2pct), 5.6% (yoy-0.1pct), 6.6% (yoy+0.4pct) and-0.9% (yoy-2pct), respectively. The increase in sales expenses is mainly due to the increase in publicity fees, while the decrease in financial expenses is mainly due to the increase in foreign currency exchange gains in overseas operations.

PA6/66 process solutions industry-leading, industry demand is expected to continue to grow PA6 downstream sportswear future growth rate is expected, the supply side depends on raw material self-sufficiency, integrated matching, economies of scale and process innovation, raw material caprolactam marginal production cost further reduced, driving PA6 in the consumer market competitiveness and stimulate its terminal application field expansion. In terms of PA66, the demand for civil and industrial use is expected to increase in the future, and the lightweight requirements of end products give rise to new increments. At the same time, with the localization of raw materials adiponitrile, the cost price is expected to have a large space to decline and improve the performance-to-price ratio.

The company is a leading international provider of PA6 and PA66 process solutions, with strong competitive advantages in technology, brands and channels, covering the whole industry chain from caprolactam and nylon 6x66 polymerization to nylon 6x66 spinning. With the relaxation of upstream raw materials and the growth of investment demand for related projects downstream, the company is expected to undertake more incremental orders.

The Asian food grade recycled polyester model project was successfully implemented, and the food grade recycled 23H1 project of Polymetrix, a subsidiary of Polymetrix, with a new high income from recycled and degradable materials business, was successfully implemented. The contract value of the project is about 230 million yuan, which is the largest recycled PET project in Asia and is of landmark significance. In addition, the chemical recycled nylon material project signed by the company and Taihua New Materials subsidiary has begun to contribute revenue and is expected to be delivered within 23 years. The project adopts the industry's first 10,000-ton chemical recycled nylon fiber system solution, which can truly realize the closed-loop recycling of high-value nylon fiber and further improve the company's recycling technology system.

Update earnings forecast and maintain "buy" rating

The company has ploughed the chemical fiber industry chain for many years, and the core technical barriers in the field of polymerization reaction engineering are deep. On the one hand, the localization of adiponitrile is expected to drive the growth of downstream order demand of the company; on the other hand, the company has developed new directions such as recycling and degradable materials in recent years, benefiting from the rapid growth of the recycling market to create new increments. We update our 25-year profit forecast and make a small adjustment, taking into account the downstream demand or the impact of terminal sportswear destination. it is estimated that the company's EPS for 23-25 years is 1.0,1.2,1.5 yuan per share (23-24 years ago is 1.0,1.30 yuan per share respectively), and the corresponding PE is 18,14,11x respectively.

Risk tips: terminal demand is lower than expected; global supply chain tension leads to project settlement cycle fluctuations; foreign exchange fluctuations and other risks.