CCG(605099) 华创证券·2024-05-29 02:01Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 28.4 CNY per share, compared to the current price of 23.31 CNY [1]. Core Views - The company reported a revenue of 2.46 billion CNY in 2023, a slight decrease of 0.4% year-on-year, and a net profit of 431 million CNY, down 3.5% year-on-year. However, in Q1 2024, revenue increased by 23.1% year-on-year to 690 million CNY, with net profit rising by 29.4% to 120 million CNY [1][2]. - The international market for leisure grass has shown a significant recovery, with sales volume and revenue increasing by 15.0% and 0.8% respectively in 2023, indicating a positive trend in overseas demand [2]. - The company is diversifying its business to mitigate the impact of domestic demand pressures, particularly in the sports grass segment, which has been affected by delays in local sports facility construction due to financial constraints [2]. Financial Summary - In 2023, the company achieved total revenue of 2.46 billion CNY, with a breakdown of 560 million CNY from sports grass, 1.68 billion CNY from leisure grass, and 210 million CNY from paving and other businesses [2]. - The gross margin improved to 31.6% in 2023, up 2.8 percentage points year-on-year, driven by lower raw material costs and favorable exchange rates [2]. - The company expects net profits to grow to 525 million CNY in 2024, with projected growth rates of 21.8% for both 2024 and 2025 [8].