CCG(605099) 华创证券·2024-09-19 03:10Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 26.6 CNY per share, compared to the current price of 18.97 CNY [1]. Core Insights - The company's performance exceeded expectations, with revenue and net profit showing significant year-on-year growth. For the first half of 2024, the company achieved revenue of 1.51 billion CNY, a 18.8% increase, and a net profit of 280 million CNY, a 25.1% increase [1]. - The company is capitalizing on market opportunities, with both domestic and international revenues showing robust growth. In the first half of 2024, the company sold 46.48 million square meters of artificial turf, a 25.5% increase year-on-year [1]. - The gross margin remained stable, and the expense ratio was diluted due to scale improvements. The net profit margin for the first half of 2024 was 18.8%, up 0.9 percentage points year-on-year [1]. - The company is accelerating its domestic and international capacity layout, with a total production capacity of 116 million square meters of artificial turf as of Q2 2024. Future expansions are expected to increase annual production capacity to 172 million square meters [1]. - The company is a leader in the global artificial turf industry, with expectations for increased market share as production capacity expands. The profit forecasts for 2024-2026 have been slightly adjusted, with expected net profits of 528 million CNY, 628 million CNY, and 739 million CNY respectively [1]. Financial Summary - For 2024, the company is projected to achieve total revenue of 2.97 billion CNY, a 20.6% increase from 2023, and a net profit of 528 million CNY, a 22.5% increase [2]. - The earnings per share (EPS) is expected to rise from 1.07 CNY in 2023 to 1.32 CNY in 2024, with a corresponding price-to-earnings (P/E) ratio of 14 [2]. - The company's total assets are projected to grow from 3.12 billion CNY in 2023 to 3.51 billion CNY in 2024, indicating a healthy growth trajectory [5].