ZBOM(SH:603801) ZHONGTAI SECURITIES·2024-09-01 08:33Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 9.83 [1][9] Core Views - The company experienced a decline in revenue and net profit in Q2 due to industry competition and high base effects, with a total revenue of 2.212 billion yuan, down 3.85% year-on-year, and a net profit of 149 million yuan, down 17.05% year-on-year [3] - Despite the pressures, the company's distribution channels maintained steady growth, with significant performance in the door and wall segments [3] - The increase in operating expenses has led to a decline in profitability, with a gross margin of 36.69% and a net profit margin of 6.72% in the first half of 2024 [3][4] - The company is implementing a full-space integrated home strategy, which is expected to drive growth despite the industry pressures [4] Financial Performance Summary - Revenue for 2021 was 5,389 million yuan, with a growth rate of 4.6%, and is projected to reach 6,799 million yuan by 2025, with a growth rate of 4.9% [1] - Net profit for 2021 was 537 million yuan, with a growth rate of 6.2%, projected to increase to 719 million yuan by 2025, with a growth rate of 12.8% [1] - Earnings per share (EPS) for 2021 was 1.23 yuan, expected to rise to 1.65 yuan by 2025 [1] - The company’s price-to-earnings (P/E) ratio is projected to decrease from 8 in 2023 to 6 in 2025 [1] Cash Flow and Efficiency - The company reported an operating cash flow of -257 million yuan in the first half of 2024, indicating short-term cash flow pressure [4] - The net operating cycle increased to 123.61 days, with inventory turnover days rising to 175.87 days [4]