Incident: Product Golden Wheel announced the 2024 three-quarter report. The company achieved operating income of 1.953 billion yuan in the first three quarters, down 3.69% year on year; net profit to mother was 0.113 billion yuan, up 26.82% year on year.

Backed by domestic supply chain leaders, we never forget our original intention to grow bigger and stronger. The company is the only listed company in the domestic textile equipment field and a leading stainless steel decorative plate processing service provider. In 2022, it was successfully acquired by the world's top 500, a leading domestic supply chain integration service provider, and a large provincial state-owned listed company. Empowered by the parent company, the company's net profit to mother maintained good growth, increasing 20.92% year-on-year in 2023, and further increasing by 26.82% in the first three quarters of 2024.

The textile industry has a solid foundation and is expected to usher in positive development as market demand picks up. According to data from the National Bureau of Statistics, the textile industry's revenue from January to August 2024 increased 4.1% over the same period last year, and total profit increased 14.7% year on year. Compared with the overall situation in the textile industry, the cotton spinning industry's performance was weak. As subsequent market demand escalates and the effects of relevant national policies continue to be released, it will provide positive support for the healthy development of the industry.

Domestic demand for stainless steel decoration materials is optimistic about trade-in, and external demand focuses on sales growth under inventory replenishment. According to data from the National Bureau of Statistics, in the first half of 2024, retail sales of household appliances and audio and video equipment products in units above the limit increased by 3.1% year-on-year, 2.1% faster than the same period last year. According to data from Aowei Cloud Network, retail sales of high-end products in the offline refrigerator market reached 42.1% in the first half of 2024, an increase of 2.2% over the previous year. The share of high-end products continued to grow for many years. In terms of exports, according to data from the General Administration of Customs, exports of household appliances increased 24.9% year on year, with refrigerator exports increasing 25.6% year on year.

Overseas layout added momentum, and the company's share of overseas revenue continued to rise. In the first half of 2024, the company achieved overseas revenue of 0.103 billion yuan, a year-on-year increase of 16.64%, and achieved gross profit of 0.03 billion yuan, an increase of 8.98% over the previous year. In the future, the company will continue to vigorously expand overseas markets and further increase the share of export business sales.

Profit forecast and investment suggestions: The company's main business includes the production and sale of textile carding and stainless steel decorative panels. At the same time, the company also continues to promote the development of high-end manufacturing businesses such as special steel wire and equipment manufacturing. Currently, construction of the high-end special steel wire project of the company's fund-raising project is being stepped up. It is expected that after the project is implemented, it will meet the needs of high-end customers and further consolidate its market position. Considering the future recovery of the domestic economy and the company's many initiatives to lay out overseas markets, we recommend continuing to pay attention.

Risk warning: Risk of price fluctuations of major raw materials, international macro and geopolitical risks, risk of loss of human resources and rising labor costs, management risks such as insufficient parent company empowerment and personnel integration.