CCG(605099) 国投证券·2024-09-02 15:38Investment Rating - The investment rating for the company is "Buy-A" with a target price of 25.80 CNY, maintaining the rating [1][5]. Core Views - The company is expected to see a continued recovery in profitability in the second half of 2024, with a significant increase in revenue and net profit in the first half of 2024 compared to the previous year [2][5]. - The global artificial turf market is projected to grow at a CAGR of 6.50% from 2023 to 2027, with the company holding a market share of 16.7% in 2023 [3][5]. - The company has made strategic investments in production capacity in Vietnam and Mexico to meet increasing demand from the Americas [4][5]. Financial Performance - In H1 2024, the company achieved revenue of 1.509 billion CNY, a year-on-year increase of 18.82%, and a net profit of 283 million CNY, up 25.08% [2][5]. - The gross margin for H1 2024 was 30.93%, with a net margin of 18.76%, reflecting improvements in operational efficiency [5][7]. - The company expects revenues of 2.904 billion CNY, 3.378 billion CNY, and 3.921 billion CNY for 2024, 2025, and 2026 respectively, with corresponding net profits of 514.6 million CNY, 610.3 million CNY, and 735.7 million CNY [5][6]. Market Dynamics - The overseas revenue for H1 2024 was 1.407 billion CNY, representing a year-on-year growth of 19.30%, primarily driven by the leisure turf segment [3][5]. - The company is actively expanding its market share in the domestic market despite reduced investment in basic sports facilities [3][5]. - The company is well-positioned to benefit from the anticipated easing of inflationary pressures in the US and a resilient macroeconomic environment [3][5].