CCG(SH:605099) Tianfeng Securities·2024-11-14 06:47Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 20.34 CNY [1]. Core Views - The company continues to experience sales growth, achieving a revenue of 750 million CNY in Q3 2024, representing a year-on-year increase of 16%. However, the net profit attributable to the parent company decreased by 12% year-on-year to 110 million CNY [1]. - For the first three quarters of 2024, the company reported a total revenue of 2.26 billion CNY, up 18% year-on-year, with a net profit of 390 million CNY, reflecting a 12% increase year-on-year [1]. - The company is focusing on market expansion and cost control to strengthen its competitive position, leveraging its leading position in leisure and sports turf products to capture more market share both domestically and internationally [1]. Financial Performance Summary - In Q3 2024, the company's gross margin decreased by 1.7 percentage points to 30.16%, while the net profit margin was 17.4%, down 1.0 percentage points year-on-year [1]. - The company has optimized its production capacity layout, which is expected to effectively mitigate tariff risks. It has four production bases in China and Vietnam, with a total capacity of 14 million square meters [1]. - The company has maintained a global market share of 16.7% in 2023, being the largest manufacturer and seller of artificial turf worldwide [1]. Financial Data and Valuation - The company’s revenue for 2024 is projected to be 2.94 billion CNY, with a growth rate of 19.52%. The net profit attributable to the parent company is expected to be 502.55 million CNY, reflecting a growth rate of 16.54% [2][4]. - The earnings per share (EPS) for 2024 is estimated at 1.25 CNY, with a price-to-earnings (P/E) ratio of 16.26 [2][5]. - The company’s total assets are projected to reach 3.32 billion CNY by 2024, with a total liability of 550.40 million CNY [3][4].