CCG(SH:605099) Guotou Securities·2024-05-08 16:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 31.90 CNY [9][19] Core Insights - The company reported a revenue of 2.461 billion CNY in 2023, a slight decrease of 0.38% year-on-year, while the net profit attributable to shareholders was 431 million CNY, down 3.54% year-on-year [2][3] - In Q1 2024, the company achieved a revenue of 688 million CNY, representing a year-on-year growth of 23.14%, and a net profit of 121 million CNY, up 29.35% year-on-year [2][3] - The company has seen a significant recovery in overseas demand, particularly in the European market, where sales volumes have returned to pre-conflict levels [7][19] Financial Performance - The company's gross margin for 2023 was 31.58%, an increase of 2.84 percentage points year-on-year, primarily due to lower raw material costs and currency depreciation [4][19] - The company’s net profit margin for 2023 was 17.52%, a slight decrease of 0.57 percentage points year-on-year, while the net profit margin for Q1 2024 improved to 17.60% [18][19] - The company’s total revenue is projected to grow to 2.904 billion CNY in 2024, with a net profit of 540 million CNY, reflecting a year-on-year growth of 25.14% [19][20] Market Dynamics - The company’s overseas revenue accounted for 88.23% of total revenue in 2023, with a slight increase of 0.02% year-on-year, driven by strong demand for leisure turf [3][19] - The domestic revenue for 2023 was 290 million CNY, a decrease of 3.29% year-on-year, attributed to delays in public sports facility projects due to tight local government finances [3][19] - The company’s sales volume of artificial turf reached 72.58 million square meters in 2023, a year-on-year increase of 12.21%, indicating a growing market share in Europe and the US [3][19]