The company released a three-quarter report

The company's 24Q3 revenue of 0.14 billion increased 16.5%; net profit due to mother increased 15% with 0.021 billion; net profit after deducting 0.02 billion increased 10%; 24Q1-3 revenue of 0.39 billion increased 15%, net profit to mother of 0.07 billion increased 19%, and net profit without deducting 0.06 billion to mother also increased 22%.

24Q1-3's gross profit margin of 35.5% increased by 2.1 pct; net profit margin of 17.6% increased by about 0.6 pct.

Outstanding advantages in design, development and manufacturing processes

The company has always adhered to the spirit of craftsmanship, paid attention to cultivating fashion acumen, and enhanced product design and development capabilities. As a fabric company that started independent design earlier in the industry, the company has a strong, industry-leading, professional and well-structured design and R&D team. The team members have many years of design and R&D experience, rich expertise and cutting-edge fashion acumen.

The company has comprehensively and systematically controlled all key points in the design process. Achieve accurate grasp of fashion trends, understand and apply consumer preferences; determine design creative themes and creative design goals based on industry experience and market demand estimates.

After years of development, the company has accumulated rich experience in the production of fabric products, established a complete industrial chain of spinning, weaving and finishing, and the overall manufacturing process is at an advanced level in the industry. The company has hundreds of weaving equipment and finishing equipment imported from Germany, Belgium, Italy, etc., and implements intelligent transformation, improving production methods through intelligent equipment, optimizing production processes through software applications, and improving production efficiency, reducing production costs, and improving product quality through data management.

In addition, the company attaches great importance to product quality management and has established a complete product quality management system. It is one of the earliest companies in the industry to set up a full set of industry-leading professional testing equipment, which can sample and test each batch of products according to the standards of each country where the customer is located to ensure that the products meet the quality standards of the importing country and the customer's product requirements.

Adjust profit forecasts to maintain a “buy” rating

The company's main business is R&D, design, production and sales of high-end decorative fabrics and products. The main products are decorative fabrics. Currently, the products are mainly used in household items such as indoor sofas, outdoor furniture, motorhome furniture, pet supplies, etc., and are mainly sold to the United States.

The company owns various brands such as “Z-Wovens”, “SunBelievable”, “NeverFear”, “Z-free”, and “Z-cycle”. Customers include internationally renowned furniture manufacturers such as Ashley, LA-Z-Boy, Rooms to Go, Bob's, Jackson, H.M. Richards, and Gujia Home Furnishing.

Based on 24Q1-3's revenue performance, the company's product advantages and customer advantages are gradually showing. We slightly raised our profit forecast. We expect the company's EPS for 24-26 to be 0.9/1 and 1.2 yuan respectively (the original value was 0.8/0.9/1.1), and PE will be 19X, 17X, and 14X, respectively.

Risk warning: increased competition risk in the industry; sales falling short of expectations; risk of losing key personnel;