FCDW(605189) 广发证券·2024-09-11 11:49Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 15.99 CNY per share, corresponding to a PE ratio of 12 times for 2024 [4]. Core Views - The company reported a significant performance increase in H1 2024, achieving revenue of 1.351 billion CNY, up 22.02% year-on-year, and a net profit attributable to shareholders of 84 million CNY, up 93.67% year-on-year. In Q2 2024, revenue reached 814 million CNY, a 28.34% increase year-on-year, with net profit attributable to shareholders soaring 164.26% to 54 million CNY [2][3]. - The growth in performance is attributed to the production commencement of the Jingzhou project, which significantly enhanced capacity and showcased scale effects, alongside a reduction in impairment provisions from the previous year [2]. - The company's profitability has improved, with H1 2024 gross margin, net margin, and net margin excluding non-recurring items at 14.46%, 6.18%, and 4.85%, respectively, reflecting increases of 2.33, 2.29, and 1.75 percentage points year-on-year [2]. - The report anticipates continued strong growth for the year, driven by the cost advantages of the Jingzhou project and the successful launch of the color-spun yarn project, which is expected to enhance product development capabilities [2]. Financial Summary - For the years 2024 to 2026, the company is projected to achieve earnings per share (EPS) of 1.33 CNY, 1.59 CNY, and 1.79 CNY, respectively [3]. - Revenue is expected to grow from 3.309 billion CNY in 2024 to 4.122 billion CNY in 2026, with growth rates of 31.8%, 17.5%, and 6.0% for the respective years [3][8]. - The report highlights a significant recovery in net profit, with projections of 200 million CNY in 2024, 238 million CNY in 2025, and 268 million CNY in 2026, reflecting growth rates of 91.1%, 19.3%, and 12.5% [3][8].