SKSHU(603737) 民生证券·2024-07-28 10:30Investment Rating - The report adjusts the investment rating to "Cautious Recommendation" due to ongoing challenges such as impairment provisions and fluctuations in raw material prices [4]. Core Views - The company reported a revenue of 5.76 billion yuan for the first half of 2024, a year-on-year increase of 0.42%, while the net profit attributable to the parent company was 210 million yuan, a decrease of 32.38% year-on-year [1][2]. - The retail business is steadily improving, with a focus on optimizing business structure and expanding channel layouts, leading to growth in the retail segment [2][3]. - The company is increasing its marketing efforts and expanding new products and channels, which has resulted in significant growth in sales volume for home improvement and waterproofing products [3][4]. Financial Forecasts - The company expects net profits attributable to the parent company to be 412 million yuan, 621 million yuan, and 826 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 44, 29, and 22 [5][4]. - The revenue forecast for 2024 is 12.48 billion yuan, with a growth rate of 10% [5]. - The gross profit margin for the first half of 2024 was 28.64%, a decrease of 2.40 percentage points year-on-year [1].