TKGF(SH:601233) Changjiang Securities·2024-05-20 03:02Investment Rating - The report maintains a "Buy" rating for the company [8][6]. Core Views - The company's Q1 performance shows significant improvement, with a revenue of 21.11 billion yuan, a year-on-year increase of 32.7%, and a net profit of 580 million yuan, marking a turnaround from losses [5][6]. - The growth in production and sales of polyester filament and PTA has notably enhanced profitability, driven by increased production scale and improved price differentials [5][6]. - The demand for polyester filament is expected to improve due to a favorable supply-demand balance, with limited new capacity additions projected for 2024 [6][5]. - The company is expanding its overseas refining operations, which is anticipated to provide substantial growth opportunities in the long term [6][5]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 21.11 billion yuan, a 32.7% increase year-on-year, and a net profit of 580 million yuan, reversing previous losses [5]. - The production capacity for polyester filament and PTA increased significantly in 2023, reaching 13.5 million tons and 10.2 million tons per year, respectively [5][6]. - The company reported a significant increase in investment income, primarily from its 20% stake in Zhejiang Petrochemical, contributing 250 million yuan in Q1 2024 [5][6]. Market Outlook - The domestic apparent consumption of polyester filament has grown from 21.17 million tons in 2014 to 43.05 million tons in 2023, with a compound annual growth rate of 8.2% [6]. - The report highlights a favorable supply-demand dynamic, with limited new capacity expected in the polyester filament industry, suggesting a continued upward trend in market conditions [6][5]. - The company is strategically investing in overseas refining projects, which are expected to enhance its long-term growth potential [6][5].