CCG(SH:605099) HTSC·2025-08-29 08:10Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 39.51 [1][5][7] Core Insights - The company reported a revenue of RMB 1.682 billion for H1 2025, representing a year-over-year increase of 11.43%, and a net profit of RMB 345 million, up 21.69% year-over-year [1] - The company has seen strong overseas sales, particularly in the leisure grass segment, which grew by 11.23% in revenue year-over-year [2] - The company is expanding its production capacity with new facilities in Vietnam and Indonesia, aiming for a total annual production capacity of 176 million square meters of artificial turf [4] Financial Performance - For H1 2025, the company achieved a comprehensive gross margin of 33.24%, an increase of 2.31 percentage points year-over-year, attributed to lower raw material prices [2] - The operating cash flow for H1 2025 improved significantly, reaching RMB 278 million, an increase of RMB 261 million year-over-year [3] - The company’s net profit forecast for 2025 has been adjusted upwards to RMB 634.83 million, reflecting a growth of 24.17% compared to 2024 [10] Production Capacity and Expansion - The company is in the process of expanding its production capabilities, with the Vietnam facility expected to produce 40 million square meters annually once operational [4] - The Indonesian facility is also under development, projected to add another 4 million square meters of production capacity [4] Valuation and Earnings Forecast - The earnings per share (EPS) forecast for 2025 is set at RMB 1.58, with a projected PE ratio of 20.14 [10] - The target price has been revised to RMB 39.51, based on a PE valuation of 25 times the expected earnings for 2025 [5][10]