CCG(605099) 广发证券·2024-07-14 00:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 22.64 CNY per share, compared to the current price of 19.35 CNY [3]. Core Insights - The artificial turf industry is experiencing steady growth, with the company holding the leading global market share of 18% as of 2021. The company's strong R&D capabilities and product innovation contribute to its solid market position, supported by certifications from FIFA, FIH, and World Rugby [2]. - The industry landscape is improving, with stable pricing expected. The company is expanding its production capacity, including a new facility in Vietnam set to begin construction in Q2 2024 and plans for further expansion in Mexico, enhancing its competitive edge [2]. - The company is projected to increase its market share and maintain its leadership position, with expected EPS of 1.26, 1.47, and 1.72 CNY per share for 2024-2026. A reasonable valuation of 18x PE for 2024 suggests a target price of 22.64 CNY per share [2]. Financial Summary - Revenue is forecasted to grow from 2,461 million CNY in 2023 to 4,261 million CNY in 2026, reflecting a compound annual growth rate (CAGR) of approximately 20.6% [6]. - Net profit is expected to increase from 431 million CNY in 2023 to 686 million CNY in 2026, with a projected growth rate of 16.7% [6]. - The company's EPS is anticipated to rise from 1.08 CNY in 2023 to 1.72 CNY in 2026, indicating a positive trend in profitability [6].