XfmGroup(SH:603225)2024-04-26 05:00Investment Rating - The report maintains a "Recommended" rating for the company Xin Feng Ming (603225.SH) [1] Core Views - The company reported a revenue of 14.452 billion yuan in Q1 2024, representing a year-on-year increase of 15.53% and a quarter-on-quarter decrease of 16.31%. The net profit attributable to shareholders was 275 million yuan, up 45.25% year-on-year and 37.95% quarter-on-quarter [1] - The growth in sales volume of polyester filament and overall improvement in price margins contributed to the year-on-year performance increase. The company achieved sales volumes of POY, FDY, DTY, and short fibers of 1.0819 million tons, 327,200 tons, 169,100 tons, and 287,500 tons, respectively, with year-on-year growth rates of 22.90%, 4.07%, 8.54%, and 42.54% [1] - The gross profit margin for Q1 2024 was 5.90%, an increase of 0.48 percentage points year-on-year, indicating enhanced profitability due to improved price margins [1] - The supply-demand dynamics for polyester filament are expected to improve marginally, with supply expansion slowing and domestic consumption showing positive trends due to stable growth policies [1] - The company is expanding its production capacity and has plans to add 400,000 tons/year of polyester filament and 650,000 tons/year of differentiated filament in 2024 and 2025, respectively [1] - Revenue projections for 2024-2026 are estimated at 67.285 billion yuan, 71.891 billion yuan, and 76.970 billion yuan, with net profits of 1.808 billion yuan, 2.340 billion yuan, and 2.787 billion yuan, reflecting year-on-year growth rates of 66.44%, 29.45%, and 19.08% respectively [1] Summary by Sections Financial Performance - Q1 2024 revenue: 14.452 billion yuan, up 15.53% YoY, down 16.31% QoQ - Q1 2024 net profit: 275 million yuan, up 45.25% YoY, up 37.95% QoQ - Sales volumes for key products showed significant year-on-year growth [1] Market Outlook - Domestic textile and apparel demand is improving, with retail sales in the sector reaching 369.4 billion yuan in the first quarter, a 2.5% increase YoY - Export figures also show improvement, with textile and apparel exports at 65.9 billion USD, up 2.0% YoY [1] Capacity Expansion - Current production capacities include 7.4 million tons/year for civil polyester filament, 1.2 million tons/year for short fibers, and 5 million tons/year for PTA - Plans for future capacity expansion include significant increases in polyester filament and PTA production [1] Investment Recommendations - Expected EPS for 2024-2026: 1.18 yuan, 1.53 yuan, and 1.82 yuan, with corresponding PE ratios of 11.69, 9.03, and 7.58 [1]