CCG(SH:605099) Haitong Securities·2024-05-22 09:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [4]. Core Views - The company has shown good performance in Q1, with the commencement of the third phase of construction in Vietnam, which will enhance production capacity [3][5]. - The company currently has a production capacity of 56 million square meters domestically and 54 million square meters in Vietnam, with an additional 20 million square meters expected from the third phase and 16 million square meters from the fourth phase, which has been relocated to Mexico [5]. - The company achieved steady sales growth in 2023, with total sales of artificial turf reaching 72.58 million square meters, a year-on-year increase of 12.21% [8]. Financial Performance and Forecast - The company reported revenues of 2,461 million yuan in 2023, with a projected increase to 2,986 million yuan in 2024, representing a year-on-year growth rate of 21.3% [7][26]. - The net profit for 2023 was 431 million yuan, with forecasts of 537 million yuan and 653 million yuan for 2024 and 2025, respectively, indicating growth rates of 24.6% and 21.5% [9][26]. - The gross margin improved to 31.58% in 2023, up 2.84 percentage points year-on-year, although the net profit margin decreased to 17.52% due to increased operating expenses [25][26]. Valuation - The price-to-earnings (P/E) ratio for 2024 and 2025 is projected to be 18.2 and 15.0, respectively, with a reasonable valuation range of 30.82 to 33.50 yuan based on comparable companies [9].