XfmGroup(SH:603225) Soochow Securities·2026-01-13 07:59Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The domestic polyester chain is advancing with self-discipline measures to reduce production, which is expected to enhance profitability for the company. The company is also investing in an Egyptian filament project to expand its international presence and mitigate trade barriers [8]. - The company's revenue and net profit are projected to grow significantly, with net profit expected to reach 2.346 billion yuan by 2027, reflecting a growth rate of 37.29% [1][8]. - The report highlights that the company plans to invest 280 million USD in the Egyptian project, which will produce 360,000 tons of functional polyester fibers annually [8]. Financial Projections - Total revenue is forecasted to increase from 61.469 billion yuan in 2023 to 83.828 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 14.22% [1]. - The company's net profit is expected to grow from 1.086 billion yuan in 2023 to 2.346 billion yuan in 2027, with a notable increase of 628.44% in 2024 [1]. - Earnings per share (EPS) are projected to rise from 0.71 yuan in 2023 to 1.54 yuan in 2027, indicating a strong upward trend in profitability [1]. Market Data - The company's closing price is reported at 19.54 yuan, with a market capitalization of approximately 29.79 billion yuan [5]. - The price-to-earnings (P/E) ratio is projected to decrease from 27.43 in 2023 to 12.70 in 2027, suggesting an improving valuation as earnings grow [1][9].