CCG(605099) 民生证券·2024-08-31 02:23Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 19.18 yuan [5]. Core Views - The company reported a revenue of 1.509 billion yuan for the first half of 2024, representing a year-on-year increase of 18.82%, and a net profit attributable to shareholders of 283 million yuan, up 25.08% year-on-year [1]. - The company is the global leader in artificial turf production and sales, with significant growth in both domestic and international markets [3]. - The report forecasts net profits for 2024-2026 to be 530 million, 620 million, and 690 million yuan respectively, with corresponding PE ratios of 15, 13, and 11 times [3]. Financial Performance - In H1 2024, the company's artificial turf sales reached 46.48 million square meters, a year-on-year increase of 25.5% [2]. - The revenue breakdown shows that leisure turf generated 1.103 billion yuan (73.05% of total revenue), while sports turf contributed 268 million yuan (17.76%) [2]. - The gross margin for H1 2024 was 30.93%, slightly down by 0.34 percentage points year-on-year, while the net margin improved by 0.94 percentage points to 18.76% [1]. Market Dynamics - The company experienced a 19.3% year-on-year increase in overseas revenue, amounting to 1.407 billion yuan, with a strong performance in European and American markets [2]. - Domestic revenue was 94 million yuan, reflecting a 14.35% increase, primarily driven by sports turf sales linked to local sports facility construction [2]. - The company has four production bases with a total annual capacity of 116 million square meters, with plans to expand capacity to 172 million square meters upon completion of new projects in Vietnam and Mexico [2]. Cost Management - The total expense ratio for H1 2024 was 8.78%, down 1.53 percentage points year-on-year, indicating improved cost efficiency as revenue grew [3]. - Sales and management expenses increased by 14.42% and 15.23% respectively, primarily due to higher personnel and intermediary costs [3].