FCDW(SH:605189) Tianfeng Securities·2025-04-09 14:42Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [6][18]. Core Views - The company reported a revenue of 900 million yuan in Q4 2024, a year-on-year increase of 23%, while the net profit attributable to shareholders was 20 million yuan, down 32% year-on-year. For the full year 2024, revenue is projected to be 3 billion yuan, up 21%, with a net profit of 130 million yuan, also up 21% [1][6]. - The increase in sales volume of colored yarn by 23% in 2024 is attributed to the launch of new projects, including intelligent spinning and dyeing projects [3][6]. - The company plans to distribute a cash dividend of 1.80 yuan per 10 shares and to increase capital by 3 shares for every 10 shares held, with the total amount for cash dividends and share buybacks accounting for 21.20% of the net profit attributable to shareholders [1][6]. Revenue and Profitability - Revenue from colored yarn reached 2.6 billion yuan, a 17% increase year-on-year, while trading yarn revenue was 230 million yuan, up 30%, and processing fees were 130 million yuan, up 42% [2][3]. - The gross profit margin for 2024 is reported at 12.26%, an increase of 0.8 percentage points year-on-year, with specific margins for colored yarn, trading yarn, and processing fees at 13.31%, 3.85%, and 7.89% respectively [4][6]. Market Performance - Domestic market revenue is projected to be 3 billion yuan, a 21% increase year-on-year, while international revenue is expected to reach 20 million yuan, a significant increase of 129% [3][6]. - The company has adopted a "warehouse-based production primarily, with order-based production as a supplement" business model, developing proprietary color cards and establishing a standard color database [2][6]. Financial Forecast - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 1.02 yuan, 1.22 yuan, and 1.47 yuan respectively, with adjustments made to the profit forecast based on 2024 performance [6][11].