XfmGroup(SH:603225) Great Wall Securities·2024-09-05 12:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [13]. Core Views - The company has shown significant profit growth in the first half of 2024, with a year-on-year increase in revenue of 10.96% and a net profit increase of 26.17% [1][2]. - The growth in performance is attributed to favorable demand in the polyester filament industry, rising product prices, and the continuous release of production capacity [2][6]. - The company is a leading player in the domestic polyester filament market, with a production capacity of 7.4 million tons and a market share exceeding 12% [2][6]. Financial Performance Summary - For the first half of 2024, the company reported revenue of 31.272 billion yuan and a net profit of 605 million yuan, with a net profit margin of 1.93%, an increase of 0.23 percentage points year-on-year [1][2]. - The average selling prices of key products such as POY, FDY, and DTY increased by 1.99%, 3.01%, and 4.80% respectively, contributing to the overall revenue growth [6]. - The company’s operating cash flow was negative at -660 million yuan, a decline of 202.89% year-on-year, primarily due to reduced sales efficiency and increased inventory [2][6]. Industry Context - The domestic polyester industry is mature and stable, with significant growth potential driven by the increasing demand for differentiated and functional polyester fibers [2][6]. - The company is expanding its upstream PTA production capacity, which is expected to reach 10 million tons by the end of 2025, enhancing its supply chain stability and cost control [6][7]. - The report anticipates continued revenue growth for the company, projecting revenues of 67.119 billion yuan, 72.637 billion yuan, and 76.706 billion yuan for 2024, 2025, and 2026 respectively [7].