Investment Rating - The report maintains a "Market Perform" rating for both the real estate and building materials sectors [1][2] Core Insights - Recent policies in Beijing and Shanghai have relaxed housing purchase restrictions, which is expected to boost market confidence and sales [2][26] - The overall performance of listed real estate companies remains under pressure, with a focus on the recovery of their balance sheets [2][28] - The building materials sector is experiencing a gradual recovery in demand, particularly in cement and glass fiber, driven by urban renewal projects and seasonal construction activities [3][44] Real Estate Sector Summary - The real estate sector has seen a 0.97% increase over the past two weeks, underperforming the CSI 300 index by 5.25 percentage points [14] - The sector's performance is influenced by recent policy changes aimed at stabilizing the market and improving sales data [2][26] - Key companies to watch include Poly Developments, Binjiang Group, and China Merchants Shekou, which are focusing on first- and second-tier cities [2][28] Building Materials Sector Summary - The building materials sector has increased by 2.86% over the past two weeks, with a year-to-date increase of 19.28% [29] - Cement prices are stabilizing, with a national average price of 316 RMB per ton, while inventory levels are gradually decreasing [33][44] - The glass fiber industry is showing signs of structural recovery, benefiting from demand in wind power and electronics sectors [3][45] Company Performance Highlights - In the consumer building materials segment, leading companies like Sanke Tree and Rabbit Baby have shown significant profit recovery, with Sanke Tree's net profit increasing by 109.30% year-on-year [48] - The report suggests focusing on companies with strong fundamentals and competitive advantages, such as Beixin Building Materials and Sanke Tree [48]

Group 1 - The core viewpoint of the report is that despite concerns about the real estate downturn affecting the valuation of the building materials sector, leading companies in the coatings segment are showing signs of operational improvement and performance recovery, indicating a favorable investment timing [1][2]. - The relaxation of real estate policies in first-tier cities, such as Beijing and Shanghai, is expected to boost consumer demand for building materials, providing a positive signal for the market to stabilize [1]. - The domestic leading coatings company, Sanke Tree, has reported improved operational performance, with a revenue of 5.82 billion yuan in the first half of 2025, reflecting a year-on-year growth of 1.0%, and a net profit attributable to shareholders of 440 million yuan, up 107.5% year-on-year, marking a historical high [2]. Group 2 - The coatings sector is considered a high-quality segment within consumer building materials, with strong growth potential for leading companies due to increasing demand for renovation and repainting, alongside strong brand attributes [3]. - Domestic brands like Sanke Tree are gradually closing the gap with foreign competitors such as Nippon Paint and Dulux, as they enhance their core competencies and upgrade their products and services [3]. - The market share of domestic companies in the coatings sector is expected to increase as local brands gain more recognition and distribution channels mature [3].

Investment Rating - The report maintains a "Positive" outlook for the building materials industry, particularly highlighting the recovery of leading companies in the paint sector [4][9]. Core Viewpoints - The report indicates that after several years of downturn in the real estate sector, the risks associated with corporate development and operations have been largely mitigated. Leading companies in the paint sector are showing signs of operational improvement and performance recovery, suggesting a favorable time for investment [4][9]. - The report emphasizes that the demand for building materials is expected to stabilize due to recent policy relaxations in first-tier cities, which are anticipated to boost consumer demand for building materials [9]. - The leading domestic paint company, SanKeShu (三棵树), has shown significant improvement in its operational performance, with a reported revenue of 5.82 billion yuan in the first half of 2025, reflecting a year-on-year growth of 1.0%, and a net profit of 440 million yuan, up 107.5% compared to the same period in 2024 [9]. Summary by Sections Market Outlook - The report notes that the overall demand for the paint industry is expected to see slight growth despite the ongoing downturn in the real estate sector. Urban renewal projects and renovation needs are driving demand [9]. Investment Recommendations - The report suggests focusing on leading companies in the paint sector, specifically recommending SanKeShu (三棵树) and Beixin Building Materials (北新建材), as they are well-positioned to benefit from the anticipated recovery in demand [4][9].

建筑材料/装修建材 三棵树（603737.SH） 2025 年 08 月 28 日 投资评级：买入（维持） | 日期 | 2025/8/28 | | --- | --- | | 当前股价(元) | 48.70 | | 一年最高最低(元) | 55.38/26.30 | | 总市值(亿元) | 359.32 | | 流通市值(亿元) | 359.32 | | 总股本(亿股) | 7.38 | | 流通股本(亿股) | 7.38 | | 近 3 个月换手率(%) | 40.13 | 8 月 25 日上海市住房城乡建设管理委员会等部门联合印发《关于优化调整本市房地 产政策措施的通知》，进一步放宽楼市限购政策。此外，三棵树发布 2025 年中报， 2025H1 公司实现营收 58.16 亿元，同比+0.97%；归母净利润 4.36 亿元，同比 +107.53%；扣非归母净利润 2.92 亿元，同比+268.48%。2025Q2 单季度营收 36.86 亿元，环比+73%；归母净利润 3.31 亿元，环比+214.49%；扣非归母净利润 3.07 亿 元，环比增加 3.22 亿元。考虑原材料价格下行，我们上调 2025 ...

Market Overview - On August 28, the renovation and building materials sector rose by 0.23% compared to the previous trading day, with Beijing Lier leading the gains [1] - The Shanghai Composite Index closed at 3843.6, up 1.14%, while the Shenzhen Component Index closed at 12571.37, up 2.25% [1] Stock Performance - Key stocks in the renovation and building materials sector showed varied performance: - Beijing Lier (002392) closed at 7.94, up 4.89% with a trading volume of 722,200 shares and a transaction value of 569 million [1] - Sankeshu (603737) closed at 48.70, up 2.08% with a trading volume of 54,700 shares [1] - Other notable stocks included Zhonggang Rongnai (6118889) at 4.54 (+2.02%), and Tubaobao (002043) at 10.63 (+1.63%) [1] Capital Flow - The renovation and building materials sector experienced a net outflow of 224 million from institutional investors, while retail investors saw a net inflow of 113 million [2] - The capital flow for key stocks indicated that: - Beijing Lier had a net inflow of 68.06 million from institutional investors, but a net outflow of 64.62 million from retail investors [3] - Sankeshu saw a net inflow of 14.63 million from institutional investors, with a net outflow of 1.65 million from retail investors [3]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is experiencing a turning point in operations, supported by the resilience of the retail market and the rapid replication of new business models such as "Immediate Move-In" and "Beautiful Countryside" [1][2] - The overall price competition in the paint industry has temporarily subsided, leading to a steady growth in retail and an improvement in gross margins [2] - The demand for renovation in the paint sector has exceeded 50%, with the "Immediate Move-In" model aligning well with consumer needs in the existing housing market [3] - The company is actively participating in rural revitalization, maintaining the top market share in the imitation stone paint segment [4] Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenues of 1.574 billion, 1.795 billion, 1.733 billion, and 460 million for home decoration wall paint, engineering wall paint, base materials, and waterproof membranes respectively, with year-on-year changes of +8.4%, -2.3%, +10.4%, and -28.6% [2] - The overall gross margin improved to 32.35%, a year-on-year increase of 3.7 percentage points, with specific margins for home decoration wall paint, engineering wall paint, base materials, and waterproof membranes at 49.4%, 35.4%, 20.6%, and 13.8% respectively [2] - The company forecasts net profits of 780 million, 980 million, and 1.21 billion for 2025, 2026, and 2027 respectively, with a compound annual growth rate (CAGR) of 54.0% [5] Market Position and Strategy - The company has over 2,300 "Immediate Move-In" community stores, reaching 420,000 households, with more than 15,000 professional service personnel [3] - The imitation stone paint market in China is projected to reach 22 billion by 2024, with the company holding a market share of 7.6% [4] - The company's revenue from the "Beautiful Countryside" business, primarily based on imitation stone paint, reached 940 million, growing over 50% year-on-year [4] Valuation - The target price for the company is set at 53.19 RMB, with a closing price of 47.71 RMB as of August 27 [11] - The report assigns a 40x price-to-earnings (PE) ratio for 2026, reflecting the strong retail attributes of the paint sector and the potential for domestic brand replacement [5]

Group 1: Automotive Industry Insights - The automotive industry is experiencing a significant shift towards intelligent driving technologies, with companies like HUAWEI and Horizon leading the way in advanced driver assistance systems [13][14]. - The penetration rate of L2 and above autonomous driving features in passenger vehicles reached 29.7% as of June 2025, reflecting a year-on-year increase of 13 percentage points [14]. - Investment recommendations include companies such as Xpeng Motors, Leap Motor, and Geely for complete vehicles, and suppliers like Suoteng Technology and Hesai Technology for components [15]. Group 2: Pharmaceutical Sector Developments - The pharmaceutical sector showed weaker performance compared to the overall market, with the biopharmaceutical segment rising only 1.05% [16]. - The World Lung Cancer Conference (WCLC) in September 2025 will showcase innovative research from Chinese pharmaceutical companies, highlighting the growing competitiveness of domestic products [16][17]. - Investment focus is recommended on companies presenting at major conferences like ESMO and WCLC, particularly those with promising clinical data [17]. Group 3: Mining and Metals Performance - Luoyang Molybdenum's net profit for H1 2025 increased by 60% to CNY 8.67 billion, driven by rising copper and cobalt prices alongside increased production [18][19]. - Zijin Mining reported a 54.41% year-on-year increase in net profit for H1 2025, attributed to a significant rise in gold production and prices [22][23]. - Cloud Aluminum's net profit for H1 2025 grew by 10%, with a strong performance in aluminum production and a proposed cash dividend of CNY 3.2 per share [20][21]. Group 4: Real Estate and Property Management - Poly Property's revenue for H1 2025 reached CNY 8.4 billion, with a net profit increase of 5%, indicating steady growth in property management services [31][32]. - Greentown China reported a significant decline in net profit by 89.7% for H1 2025, primarily due to uneven revenue recognition and asset impairment provisions [33][34]. - The company maintained a strong sales performance, with total sales area down only 10% compared to the industry average, reflecting resilience in a challenging market [34].

证券研究报告 | 2025年08月27日 三棵树（603737.SH） 优于大市 2025 中报点评：渠道精耕升级，经营改善持续兑现 收入同比有韧性，利润高增持续兑现。2025H1 公司实现营收 58.2 亿元，同 比+0.97%，归母净利润 4.4 亿元，同比+107.5%，扣非归母净利润 2.9 亿元， 同比+268.5%，高于此前业绩预告中枢（归母净利润 3.8-4.6 亿元，扣非归 母净利润 2.3-3.1 亿元）EPS 为 0.59 元/股；其中 Q2 单季度营收 36.9 亿元， 同比-0.2%，归母净利润 3.3 亿元，同比+103%，扣非归母净利润 3.1 亿元， 同比+96%，单季收入同比微降有韧性，同时受益毛利率提升、费用及减值减 少，利润同比高增持续兑现，2025H1 计提信用减值损失 0.87 亿元，其中 Q2 单季 0.94 亿元，同比减少 0.7 和 0.89 亿元。 风险提示：地产需求下行超预期；渠道拓展不及预期；原材料上涨超预期 投资建议：渠道精耕转型升级，看好新成长阶段，维持"优于大市"评级 公司精耕渠道转型升级，零售新业态模式成熟并快速复制，工程端聚焦并深 入布局厂房、酒店 ...

Group 1 - The stock price of Sankeshu is reported at 49.11 yuan as of August 26, 2025, with a decrease of 1.90 yuan, representing a decline of 3.72% from the previous trading day [1] - The opening price for the day was 51.00 yuan, with a highest point of 51.02 yuan and a lowest point of 48.29 yuan, and the trading volume reached 68,155 hands with a transaction amount of 335 million yuan [1] - Sankeshu operates in the decoration and building materials industry, focusing on the research, production, and sales of architectural coatings, and is recognized as a leading domestic paint enterprise [1] Group 2 - The product range of Sankeshu includes wall coatings, wood coatings, and adhesives, which are widely used in real estate and home decoration sectors [1] - Recently, Founder Securities upgraded Sankeshu's rating from "Recommended" to "Strongly Recommended," indicating a positive outlook from institutions regarding the company's development prospects [1] - On August 26, the net inflow of main funds into Sankeshu was 3.4795 million yuan, with a cumulative net inflow of 37.893 million yuan over the past five trading days [1]

Group 1 - The renovation and building materials sector experienced a slight increase, closing at 15,272.80 points with a growth rate of 0.83% [1] - Several stocks in the renovation and building materials sector saw price increases, with Yangzi New Materials leading at 4.08 CNY per share, up 7.37% [1] - Kangxin New Materials closed at 2.91 CNY per share, with a growth of 6.99%, ranking second in the sector [1] Group 2 - *ST Yazhen closed at 27.29 CNY per share, with a growth of 5.00%, ranking third among renovation and building materials stocks [1] - Kairun Co. led the decline in the sector, closing at 11.55 CNY per share, down 6.93% [1] - Yong'an Forestry and Sankeshu also experienced declines, closing at 7.02 CNY per share (down 3.70%) and 49.45 CNY per share (down 3.06%) respectively [1] Group 3 - Dongwu Securities released a report indicating that the real estate chain's slope is slowing but the direction remains unchanged, with the clearing of the real estate chain nearing completion [1] - The supply structure has significantly improved, with stable demand expected in 2025 and low growth expectations for companies, indicating a high probability for the sector [1] - The "old-for-new" subsidy is expected to accelerate home appliance consumption in Q4 2024, with furniture consumption also anticipated to increase significantly by March 2025, and a notable acceleration in home decoration expected by Q3 2025 [1]