Preview of New Stocks on the U.S. Stock Market | Nylon filament manufacturer Jia Mei New Materials: Steady growth in performance, targeting opportunities for industry transformation and upgrading.

Since 2025, global capital markets have become more volatile, but the wave of Chinese concept stocks listing in the US continues to rise against the trend. Just recently, a "micro-industrial unicorn" has knocked on the doors of the NASDAQ. On June 17, the holding company of Fujian Jia Yi Chemical Fiber Co., Ltd., a nylon filament manufacturer, formally submitted an application for an initial public offering (IPO) to the US Securities and Exchange Commission (SEC), planning to raise up to $6 million, with the stock code "CNMT". It is reported that the company was established in 1999 and is a professional manufacturer of customized nylon filament products, dedicated to providing multi-functional, environmentally friendly, and customized elastic nylon new material products. It mainly operates through its subsidiary, Fujian Jiayi Chemical Fiber, focusing on the research and development and manufacturing of elastic nylon functional yarn. Due to the fluctuating demand in the clothing and home textile industries, the domestic nylon filament industry has also seen growth but with risks of small nylon filament enterprises exiting the market. By choosing to list on NASDAQ, Jiamei New Material aims to enhance its corporate value through the capital market, which is undoubtedly a bold move. However, the question remains whether Jiamei New Material can stand firm in the secondary market with its own strength. With steady revenue growth and a wide sales network Since 2012, Jiamei New Material has been actively exploring and seeking product technological innovation, gradually realizing product transformation and upgrading. The company's professional research and development and production team has developed and mass-produced a series of specific functional nylon filament products, such as copper-dipped antibacterial and antiviral nylon yarn, halogen-free and non-dripping flame-retardant nylon yarn, heat-insulating and heat-storing nylon yarn, far-infrared heat-insulating nylon yarn, graphene nylon yarn, as well as environmentally friendly and biodegradable corn-based nylon yarn. Currently, the company's main nylon products can be divided into four categories, namely primary POY products, ordinary DTY products, functional and customized DTY products, as well as lace, fabrics, and others. Among them, the primary POY products include the manufacture of POY (Pre-Oriented Yarn), which is the basic material for producing various other derived nylon products; the ordinary DTY part includes DTY (Draw Textured Yarn), a traditional nylon elastic yarn used in general clothing manufacturing. According to GMTEight, Jiamei New Material's nylon filament products can be used in a variety of downstream products, from clothing to household textiles and medical clothing. Since 2016, the company has expanded its sales range from domestic to overseas, with its products now exported to various overseas textile markets such as the United States, Italy, Canada, Belgium, Poland, Colombia, the Czech Republic, South Korea, India, Vietnam, Pakistan, Bangladesh, India, Sri Lanka, Mexico, and Turkey. Supported by a strong sales network, Jiamei New Material's performance in recent years has shown steady growth traits. According to the prospectus data, as of March 31, 20243 and the fiscal year ending on March 31, 2025, the company achieved revenues of $9.4 million and $11.5 million, respectively, with a year-on-year increase of 22.34%; and a net profit of $5.876 million and $8.379 million, respectively, with a year-on-year increase of 42.6%. Both core financial indicators have shown steady growth. During the reporting period, Jiamei New Material's functional and customized DTY products, primary POY products, lace, fabrics, and other revenues have all shown different growth trends. In the 2025 fiscal year, the company's functional and customized DTY products achieved revenue of $24.384 million, an increase of 23.8% year-on-year; primary POY products achieved revenue of $22.879 million, an increase of 73.8% year-on-year; lace, fabrics, and other revenue reached $34.927 million, an increase of approximately 122.5% year-on-year, these businesses collectively contributed to the steady growth of Jiamei New Material's revenue. Industry recovery amidst competition intensification, how to break through? The downstream consumption of Chinese nylon filament is mainly concentrated in the textile industry. In recent years, breakthroughs in domestic textile technology, coupled with the growth in demand for chemical yarn raw materials, have driven a significant increase in nylon consumption. However, due to multiple factors such as the seasonal nature of demand for nylon filament in the clothing industry and the heavy reliance of the home textile industry on foreign demand growth, the entire industry has shown characteristics of "volatile recovery". According to data from Longzhong Information, the physical consumption of nylon filament was about 3.16 million tons in 2023, with a compound annual growth rate of 3.3% from 2019 to 2023. The increase in consumption from 2019 to 2021 was mainly due to the rapid development of downstream textile products. However, the growth rate slowed down in the following years, primarily due to trade frictions between China and the United States, which affected fabric exports, as well as the reduction in demand for textiles due to the COVID-19 pandemic. With different expectations in downstream industries, it is expected that by 2027, the proportion of consumption in industrial textiles and home textiles industries will slightly decrease, while the clothing industry will significantly increase. From 2024 to 2028, as the capacity of some downstream industries gradually expands, nylon consumption is expected to gradually increase. However, there is still a significant excess capacity in nylon production. Considering the current overcapacity, product homogeneity, and intense competition, it is estimated that nylon consumption will reach 3.43 million tons in 2024, and the total consumption by 2028 will be close to 4.7 million tons. Additionally, with the macroeconomic recovery and improved demand expectations, the low inventory and high production efficiency of nylon are expected to provide favorable support for future price increases. As the nylon filament industry undergoes a volatile recovery, market competition is intensifying, which also brings certain pressure to the development of Jiamei New Material. Specifically, Jiamei New Material will be competing with large, vertically integrated textile manufacturers and other small manufacturers, as well as domestic and foreign manufacturers in China, making the market competition fierce. The existing and potential competitors of the company may have significantly more funds, technology, manufacturing, marketing, or other resource advantages than the company. If the company fails to compete successfully in this industry or if the competition further intensifies, it may have an adverse impact on the company's business, prospects, and financial condition. Fortunately, in recent years, nylon filament has been developing towards high-end, differentiated, and green directions, and Jiamei New Material also has a certain first-mover advantage. Firstly, the market demand for high-end differentiated nylon filament products such as fine denier, ultra-fine denier, irregular cross-section, functional (antibacterial, flame retardant, UV-resistant, moisture-wicking, conductive, biodegradable, etc.), high-strength, and high-modulus has been quickly growing, becoming the key for enterprises to increase added value and avoid low-end red ocean competition. Secondly, the progress in spinning technology (such as high-speed spinning, FDY, POY, HOY, etc.), modification technology, and functional finishing technology is the foundation supporting the high-end product direction. In addition, with stricter environmental regulations and enhanced consumer environmental awareness, the industry is moving towards circular economy (regenerated nylon), bio-based nylon, energy conservation, emission reduction, and clean production. Biodegradable nylon is also an exploration direction. Currently, Jiamei New Material is continuously promoting the upgrading and transformation of its products towards high-end, differentiated, and green directions, which may put the company in a relatively advantageous competitive position in the intense competitive landscape. In conclusion, the steady revenue growth, broad sales network, and other performance factors undeniably make Jiamei New Material's IPO in the US a favorable move. At the same time, the company's technological, product, and industrial chain advantages in the nylon filament field may help the company grasp opportunities in the industry's transformation and upgrade, further enhancing the company's value proposition.