LTTC(000726) 广发证券·2024-05-30 07:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 8.87 CNY per share based on a 12x P/E ratio for 2024 [59]. Core Viewpoints - The company is expected to see a performance turnaround in 2024, with projected revenue growth driven by increased production capacity and stable pricing [14][59]. - The company has a stable shareholding structure, with the largest shareholder holding 17.17% of the shares [11]. - The company has been expanding its overseas production capacity, which is expected to mitigate risks associated with U.S.-China trade tensions [31][58]. Company Overview - The company operates a full industry chain from spinning to garment manufacturing, primarily producing high-end colored woven fabrics and garments [1]. - The company has consistently ranked among the top ten in China's cotton textile industry in terms of main business revenue [1]. Financial Performance - From 2010 to 2023, the company's revenue CAGR was 1.23%, indicating stable performance despite fluctuations in net profit due to factors like exchange rates and cotton prices [2]. - The company experienced significant revenue and net profit declines in 2020, attributed to the pandemic and reduced demand from Europe and the U.S. [2]. - The company has maintained a leading position in profitability, solvency, and operational efficiency within the A-share cotton textile industry over the past five years [20]. Production Capacity and Utilization - The company’s fabric production capacity is projected to reach 307 million meters by 2024, with utilization rates expected to be 76%, 78%, and 80% from 2024 to 2026 [40]. - The company has a diversified production capacity across regions, including significant operations in Vietnam and Cambodia [30][31]. Revenue Projections - The company’s revenue is projected to grow to 6.725 billion CNY in 2024, with net profit expected to reach 604 million CNY, reflecting a year-on-year growth of 12.8% and 49.8%, respectively [59]. - The company anticipates stable pricing for its products, with fabric prices expected to remain at approximately 3.30 USD per meter from 2024 to 2026 [40]. Market Position - The company is recognized as a leader in the colored woven fabric industry, with a strong competitive edge due to its product quality and market presence [59]. - The company has a robust patent portfolio, holding 288 patents, which supports its innovation capabilities in the textile sector [54].