XfmGroup(603225) 国泰君安·2024-05-06 05:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 19.52 CNY, up from the previous target of 18.30 CNY [1][2]. Core Insights - The company's Q1 2024 performance met expectations, driven by strong downstream demand for long filaments, with revenue reaching 14.4 billion CNY, a year-on-year increase of 15.53% [1][2]. - The report highlights an optimistic outlook for the long filament industry, with expectations for price spreads to widen due to limited new capacity and strong demand recovery post-Chinese New Year [1][2]. - The company is projected to achieve EPS of 1.22, 1.46, and 1.80 CNY for 2024, 2025, and 2026 respectively, reflecting a positive growth trajectory [1][2]. Summary by Sections Financial Performance - Q1 2024 revenue was 14.4 billion CNY, up 15.53% year-on-year, with net profit attributable to shareholders at 1.086 billion CNY, a 628% increase [1][2]. - The company expects to maintain a strong EBIT margin, with projections of 4.8% for 2024 and 5.2% for 2025 [2]. Market Position - The long filament industry is experiencing a favorable supply-demand balance, with limited new capacity expected to enhance profitability for leading companies [1][2]. - The company plans to expand its production capacity for differentiated polyester fiber materials, aligning with industry growth rates [1][2]. Valuation Metrics - The report provides a projected PE ratio of 11.68 for 2024 and 9.76 for 2025, indicating a favorable valuation compared to historical performance [2]. - The company's market capitalization is reported at 21.856 billion CNY, with a current stock price of 14.29 CNY [2].