SHUNHO STOCK(SZ:002565) Zheng Quan Zhi Xing·2025-08-15 23:03Core Viewpoint - The financial performance of Shunhao Co., Ltd. (002565) shows a decline in revenue but an increase in net profit, indicating improved profitability despite lower sales [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 620 million yuan, a decrease of 12.19% compared to 706 million yuan in 2024 [1]. - Net profit attributable to shareholders reached 33.30 million yuan, an increase of 23.11% from 27.05 million yuan in the previous year [1]. - The gross profit margin improved to 27.39%, up 9.64% year-on-year, while the net profit margin increased to 6.90%, reflecting a 16.27% rise [1]. - Total expenses (selling, administrative, and financial) amounted to 90.80 million yuan, accounting for 14.66% of revenue, which is a 10.03% increase year-on-year [1]. Key Financial Metrics - Earnings per share remained at 0.03 yuan, with a year-on-year increase of 23.14% [1]. - Operating cash flow per share was 0.09 yuan, reflecting a 4.85% increase compared to the previous year [1]. - The company's net assets per share decreased to 1.69 yuan, down 5.35% year-on-year [1]. Changes in Financial Items - Contract liabilities decreased by 1.29% due to an increase in prepayments based on contractual obligations [3]. - Trade financial assets increased by 152.65% as the financial products had not yet matured for redemption [3]. - Accounts receivable decreased by 31.74% to 219 million yuan, indicating improved collection efficiency [1][3]. - The company experienced a 368.02% increase in prepayments, attributed to increased rental pre-sales [3]. Business Evaluation - The company's return on invested capital (ROIC) was 3.15%, indicating weak capital returns historically, with a median ROIC of 2.44% over the past decade [4]. - The net profit margin for the previous year was 4.87%, suggesting low added value in products or services [4]. - The company has experienced four years of losses since its listing, indicating potential concerns for value investors [4]. Cash Flow and Debt Management - The net cash flow from operating activities increased by 4.85%, attributed to higher cash receipts related to operations [3]. - The net cash flow from investing activities rose by 41.26%, due to increased cash received from investment recoveries [3]. - The net increase in cash and cash equivalents decreased by 17.64%, primarily due to dividend distributions [3].