Core Viewpoint - Qingdao Qinghe's IPO application has been withdrawn, leading to the termination of its listing review by the Shanghai Stock Exchange [1] Company Overview - Qingdao Qinghe is primarily engaged in the research, production, and sales of artificial turf and grass fibers, ranking as the second-largest global producer and seller of artificial turf [3] - The company has established a comprehensive self-research, production, and sales system covering the entire process from grass fiber production to finished turf sales since its establishment in 2009 [4] Market Position - As of 2023, Qingdao Qinghe holds a global market share of 12.9% in the artificial turf sector [3] - The company has a diverse product range, with over 50 types of grass fiber and more than 100 varieties of green turf, capable of quickly responding to complex market demands [4] Financial Performance - Revenue figures for Qingdao Qinghe from 2022 to the first half of 2024 are as follows: 1.828 billion yuan, 1.956 billion yuan, and 1.036 billion yuan, respectively; net profits for the same periods are 100 million yuan, 129 million yuan, and 61 million yuan [5] - The majority of the company's revenue comes from overseas sales, with the proportion of foreign sales to main business income being 97.94%, 98.62%, 98.71%, and 99.16% from 2021 to the first half of 2024 [5] Industry Context - The artificial turf industry has seen rapid growth globally, with significant market potential, although competition is intensifying, which may impact Qingdao Qinghe's operations [5] - Major companies in the industry are expanding production capacity, leading to increased supply and potential price declines [5] IPO Details - Qingdao Qinghe's IPO was initially accepted in March 2023, with plans to raise 1.092 billion yuan for various projects, including a production base in Vietnam and technology upgrades [6] - The company did not disclose responses to inquiries from the review process before withdrawing its IPO application [6]

Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [8][15]. Core Insights - The company reported excellent performance in Q1 2025, with significant revenue growth and deepening global capacity layout [1][10]. - In 2024, the company achieved a revenue of 2.952 billion yuan, representing a year-on-year growth of 19.92%, and a net profit of 511 million yuan, up 18.56% [4][9]. - The company plans to distribute a cash dividend of 6.40 yuan per 10 shares, totaling 257 million yuan, with a payout ratio of 50.28% [4]. Financial Performance - In Q1 2025, the company reported revenue of 793 million yuan, a 15.27% increase year-on-year, and a net profit of 156 million yuan, up 28.73% [4][6]. - The gross margin improved from 29.50% in Q4 2024 to 32.55% in Q1 2025, while the net margin increased from 16.98% to 19.67% in the same period [6]. - The company’s revenue from leisure grass, sports grass, and paving business in 2024 was 2.052 billion yuan, 594 million yuan, and 288 million yuan, respectively, with growth rates of 22.43%, 6.38%, and 37.18% [5]. Capacity Expansion - The company is expanding its production capacity with new projects in Vietnam and Mexico, aiming for a total annual capacity of 172 million square meters after completion [7]. - The Vietnam facility is expected to produce 40 million square meters of artificial turf annually, while the Mexico facility is projected to produce 16 million square meters [7]. Future Projections - The company forecasts net profits of 600 million yuan, 703 million yuan, and 812 million yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 1.49 yuan, 1.75 yuan, and 2.02 yuan [9][12]. - The projected revenue growth rates for the next few years are 16.10% for 2025, 14.60% for 2026, and 12.40% for 2027 [9].