CCG(SH:605099) Xinda Securities·2025-05-05 11:02Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company achieved a revenue of 2.952 billion yuan in 2024, representing a year-on-year increase of 19.9%, with a net profit attributable to shareholders of 511 million yuan, up 18.6% year-on-year [1] - The company has maintained its position as the world's largest producer of artificial turf for 14 consecutive years, benefiting from cost, product, and scale advantages [1][2] - The company is expected to continue improving its profitability due to internal cost reductions, declining raw material prices, and an increased proportion of high-margin business in the U.S. [1][2] Revenue and Profitability - In 2024, the company generated domestic and overseas revenues of 319 million yuan and 2.616 billion yuan, respectively, with year-on-year growth of 12.5% and 21.0% [2] - The gross profit margin for domestic sales was 35.4%, an increase of 1.7 percentage points year-on-year, while the overseas margin was 29.5%, a decrease of 1.4 percentage points [2] - The company’s gross margin for Q1 2025 was 32.6%, up 2.1 percentage points year-on-year, and the net profit margin was 19.7%, also up 2.1 percentage points [3] Production Capacity and Expansion - As of the end of 2024, the company's total production capacity reached 116 million square meters, with domestic capacity at 56 million square meters and Vietnam's capacity at 60 million square meters [3] - The company is expected to accelerate the transfer of U.S. orders to Vietnam due to significant increases in domestic tariffs [3] Cash Flow and Operational Efficiency - The operating cash flow for Q1 2025 was 59 million yuan, an increase of 38 million yuan year-on-year [4] - The inventory turnover days were 94.84 days, a decrease of 0.88 days year-on-year, while accounts receivable turnover days increased by 2.78 days to 72.28 days [4] Profit Forecast - The company’s net profit attributable to shareholders is projected to be 648 million yuan in 2025, 758 million yuan in 2026, and 870 million yuan in 2027, with corresponding P/E ratios of 12.5X, 10.7X, and 9.3X [4]