Dongpeng Holdings(SZ:003012) Soochow Securities·2024-08-31 17:00Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a revenue of 3.094 billion yuan in H1 2024, a year-on-year decrease of 14.72%, with a net profit attributable to shareholders of 211 million yuan, down 45.22% year-on-year [2] - Market demand is weak, but the bathroom business has seen slight growth, with a 5.22% increase in revenue due to improved channel management and a focus on high-quality clients [2] - The gross margin for the tile business is 31.96%, a decrease of 1.50 percentage points year-on-year, while the sanitary ware business gross margin is 21.66%, down 2.19 percentage points year-on-year [2] Financial Performance Summary - Total revenue (in million yuan) for the years 2022A, 2023A, 2024E, 2025E, and 2026E is 6930, 7773, 6870, 7421, and 7903 respectively, with year-on-year changes of -13.15%, 12.16%, -11.61%, 8.02%, and 6.49% [1][3] - Net profit attributable to shareholders (in million yuan) for the same years is 202.01, 720.43, 575.64, 639.95, and 721.93, with year-on-year changes of 31.50%, 256.63%, -20.10%, 11.17%, and 12.81% [1][3] - The latest diluted EPS for 2024E is 0.49 yuan per share, with a P/E ratio of 11.27 [1][3] Cash Flow and Cost Management - Operating cash flow for H1 2024 is 226 million yuan, a decrease of 75.86% year-on-year, primarily due to reduced sales collections and increased bank acceptance bill payments [2] - The company has managed to reduce unit manufacturing costs for tiles by 3.60% year-on-year [2]