TKGF(SH:601233) Bank of China Securities·2025-09-08 14:18Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 14.35 and a sector rating of "Outperform" [1] Core Views - The company has shown significant growth in its non-recurring net profit, with a year-on-year increase of 16.72% in the first half of 2025, despite a decrease in total revenue [3][4] - The company is expected to benefit from the recovery of the polyester filament industry, maintaining a "Buy" rating [3][4] Financial Performance Summary - In the first half of 2025, the company achieved total revenue of RMB 441.58 billion, a decrease of 8.41% year-on-year, while the net profit attributable to the parent company was RMB 10.97 billion, an increase of 2.93% [3][7] - The second quarter of 2025 saw revenue of RMB 247.38 billion, down 8.73% year-on-year but up 27.38% quarter-on-quarter [7][9] - The company’s gross margin improved to 6.76%, up 0.57 percentage points year-on-year, with a net margin of 2.50%, also up 0.27 percentage points year-on-year [7][8] Earnings Forecast - The earnings per share (EPS) for 2025-2027 are projected to be RMB 0.98, RMB 1.32, and RMB 1.59, respectively, with corresponding price-to-earnings (PE) ratios of 14.7x, 10.9x, and 9.0x [4][6] - The company’s total revenue is expected to reach RMB 94.746 billion in 2025, with a growth rate of -6.5% [6][10] Industry Positioning - The company is positioned as a leader in the polyester filament production industry, with a comprehensive supply chain that includes coal resources, enhancing its competitive advantage [7][8] - The company has successfully acquired high-quality coal resources, which will support its integrated production capabilities [7][8]