TKGF(SH:601233) Huachuang Securities·2024-05-20 11:02Investment Rating - The report upgrades the investment rating of Tongkun Co., Ltd. to "Strong Buy" with a target price of 20.37 CNY [2][8]. Core Insights - The company's Q1 performance shows significant year-on-year and quarter-on-quarter growth, indicating a strong outlook for the entire year [2][8]. - The company achieved a revenue of 82.64 billion CNY in 2023, a year-on-year increase of 33.3%, and a net profit of 797 million CNY, reflecting a remarkable growth of 512.1% [3][9]. - For Q1 2024, the revenue reached 21.11 billion CNY, up 32.66% year-on-year, with a net profit of 580 million CNY, marking a 218.01% increase [2][3]. Financial Performance Summary - 2023 Financials: - Total revenue: 82.64 billion CNY, up 33.3% YoY - Net profit: 797 million CNY, up 512.1% YoY - Earnings per share (EPS): 0.33 CNY [3][9]. - 2024 Projections: - Expected revenue for 2024: 99.17 billion CNY, with a growth rate of 20.0% - Expected net profit for 2024: 2.94 billion CNY, with a growth rate of 268.3% - Projected EPS for 2024: 1.22 CNY [3][9]. Market Position and Industry Outlook - Tongkun Co., Ltd. is a leader in the polyester filament industry, with a global market share exceeding 18% and a domestic market share over 28% [2][8]. - The company is expanding its upstream integration by investing in refining projects, such as the integrated refining project in Indonesia [2][8]. - The report anticipates a favorable supply-demand balance in the long filament industry, with a significant rebound in profits expected in 2024 due to reduced new capacity growth [2][8].