The company released a three-quarter report

The company's 24Q3 revenue was 1.57 billion, an increase of 4.5%; net profit to mother of 0.12 billion increased by 4%, and net profit after deducting 0.09 billion to mother decreased by 22%;

24Q1-3's revenue was 4.4 billion, up 1.33%; net profit to mother of 0.29 billion decreased 14%; net profit after deducting 0.35 billion to mother increased 16%. The price of 24Q1-3 products is basically stable. Among them, sales of fabric products increased slightly year on year; sales of clothing products declined slightly year on year.

24Q1-3's export revenue increased slightly compared to the same period last year, and domestic sales revenue decreased slightly compared to the same period last year; in a single quarter, the company's export and domestic sales revenue both increased slightly by 24Q1-3, and the company's gross profit margin increased by 24.40% and 1.94 pct; among them, the gross margin of fabric products increased, and the gross margin of clothing products did not change much;

24Q1-3's net profit margin was 6.78%, down 0.61 pct.

Comprehensive vertical industrial chain and international layout to strengthen the international leading position of yarn-dyed fabrics The company already has production bases, design institutions and market service agencies overseas. It can use international resource allocation to give full play to the advantages of the international industrial layout and highlight the company's leading international position in dyed fabrics for shirts. The “Overseas High-end Fabric Product Line Project (Phase 1)” is currently in the phase of climbing capacity. It is expected that part of the production capacity will be released this year. In the future, the company will continue to concentrate superior resources to promote its early production efficiency.

Strengthen R&D and technical cooperation to lead a new chapter of green and low-carbon sustainable development. The company has strong R&D capabilities and a high-level technical cooperation platform. The company insists on independent innovation. Relying on technology platforms such as the National Enterprise Technology Center, the National Industrial Design Center, the National Postdoctoral Research Workstation, and the Shandong Engineering Technology Research Center, the company has long-term technical cooperation and joint product development with research institutes, universities, strategic customers and important suppliers. It places equal emphasis on cutting-edge technology reserves and applied technological innovation, and continues to strengthen new product development oriented towards commercial value realization.

Adjust profit forecasts to maintain “buy” ratings

Based on 24Q1-3 performance, there is still some uncertainty about domestic demand consumption, which may affect the company's order situation; we adjusted the profit forecast, and the company's 24-26 EPS is expected to be 0.46, 0.5, and 0.54 yuan (original values were 0.48, 0.54, and 0.63 yuan), respectively, and PE was 14X, 13X, and 12X, respectively.

Risk warning: trade friction; risk of convertible bonds; overcapacity.