科顺股份：收入承压，盈利企稳

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved approximately 35 billion yuan in revenue for the first half of 2024, representing a year-on-year decline of 20%, while the net profit attributable to shareholders was about 0.9 billion yuan, showing a year-on-year increase [1][3]. - The demand in the real estate industry is expected to remain low, impacting the waterproofing materials sector significantly [3][6]. - The company’s gross profit margin for the first half of the year was approximately 23.4%, an increase of 2.3 percentage points year-on-year, with improvements in the gross profit margins of waterproofing membranes and coatings [5][6]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of approximately 35 billion yuan, down 20% year-on-year, and a net profit of about 0.9 billion yuan, which is an increase compared to the previous year [1]. - The gross profit margin for the first half was around 23.4%, up 2.3 percentage points year-on-year, with specific margins for waterproofing membranes and coatings at 21.0% and 33.9%, respectively [5]. - The second quarter of 2024 saw a revenue of about 20 billion yuan, a 20% decline year-on-year, but the net profit surged by 1527% to approximately 0.4 billion yuan [3]. Market Conditions - The waterproofing materials industry is facing a continuous decline in demand, with production dropping from 4.1 billion square meters in 2021 to 3.1 billion square meters in 2023, a cumulative decrease of 25% [6]. - The company’s revenue growth over the past four quarters has shown a consistent downward trend, reflecting the ongoing weakness in new construction demand in the building industry [6]. Cash Flow and Financial Health - The company’s cash collection ratio improved slightly, with a collection ratio of 0.92 for the first half of 2024, compared to 0.81 in 2022 and 0.83 in 2023 [6]. - However, the net cash flow from operating activities was negative at -1.4 billion yuan for the first half of 2024, primarily due to increased cash payments to suppliers [6]. Future Outlook - The company is expected to achieve net profits of approximately 3.0 billion yuan and 4.5 billion yuan for 2024 and 2025, respectively, with corresponding valuations of 16 and 11 times [6].