TKGF(SH:601233)2024-05-09 07:02Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 14.68 and a sector rating of "Outperform" [1][3]. Core Views - The company has significantly increased its production and sales of polyester filament, achieving a revenue of RMB 826.40 billion in 2023, a year-on-year growth of 33.30%, and a net profit attributable to shareholders of RMB 7.97 billion, a remarkable increase of 539.10% [4][6]. - In Q1 2024, the company reported a revenue of RMB 211.11 billion, a year-on-year increase of 32.66%, and a net profit of RMB 5.80 billion, marking a turnaround from losses [4][7]. - The recovery in the polyester filament market and the company's complete industrial chain layout are expected to support continued business growth, maintaining the "Buy" rating [4][6]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of RMB 826.40 billion, up 33.30% from RMB 619.93 billion in 2022. The net profit attributable to shareholders was RMB 7.97 billion, compared to RMB 1.25 billion in 2022, reflecting a growth of 539.10% [4][6]. - For Q1 2024, the company reported revenue of RMB 211.11 billion, a 32.66% increase from RMB 159.13 billion in Q1 2023, and a net profit of RMB 5.80 billion, compared to a loss in the previous year [4][7]. Production and Sales - The company sold 10.31 million tons of polyester filament in 2023, a year-on-year increase of 34.97%. The sales volumes for POY, FDY, and DTY were 7.84 million tons, 1.47 million tons, and 994,000 tons, respectively, with growth rates of 35.36%, 38.48%, and 27.32% [4][6]. - In Q1 2024, the company sold 2.59 million tons of polyester filament, with POY, FDY, and DTY sales of 1.94 million tons, 415,300 tons, and 234,600 tons, showing year-on-year growth of 37.43%, 36.93%, and 12.68% [4][7]. Investment and Future Outlook - The company's investment income decreased to RMB 3.21 billion in 2023, down 73.93% from the previous year, but is expected to recover as the petrochemical industry improves [4][6]. - The company has established a complete industrial chain layout, with polyester filament capacity of approximately 13.5 million tons per year and PTA capacity of about 10.2 million tons per year as of the end of 2023 [4][6]. - Future net profits are projected to be RMB 31.10 billion, RMB 41.93 billion, and RMB 55.68 billion for 2024, 2025, and 2026, respectively, with corresponding EPS of RMB 1.29, RMB 1.74, and RMB 2.31 [4][5].