Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company is actively cleaning up historical burdens, leading to an improving cash flow trend despite a decline in revenue and profit [3][4]. - The company is focusing on channel transformation and expanding retail channels, with significant contributions from the civil construction group [3]. - The company is diversifying its product offerings beyond waterproofing, with positive performance in categories like sand powder and tile adhesive [3]. Financial Summary - For the first three quarters of 2024, the company reported revenue of 21.7 billion yuan, a year-on-year decrease of 14.4%, and a net profit attributable to shareholders of 1.28 billion yuan, down 45.7% [1]. - The operating cash flow for the same period was -490 million yuan, an improvement of 4.27 billion yuan year-on-year [2]. - The gross margin for the first three quarters was 29.1%, a slight increase of 0.1 percentage points year-on-year, while the net profit margin was 5.8%, down 3.5 percentage points [2][3]. Quarterly Performance - In Q3 2024, the company achieved revenue of 6.48 billion yuan, a decrease of 23.8% year-on-year, with a net profit of 330 million yuan, down 67.2% [1][3]. - The gross margin for Q3 was 28.9%, a decline of 0.5 percentage points year-on-year, while the net profit margin was 5.1%, down 6.9 percentage points [3]. - The operating cash flow for Q3 was 840 million yuan, an increase of 1.66 billion yuan year-on-year [3]. Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been revised down to 1.628 billion yuan, 2.228 billion yuan, and 2.706 billion yuan, reflecting year-on-year declines of 15%, 9%, and 10% respectively [4]. - The company is expected to achieve a lighter operational structure in the coming year due to its efforts in cleaning up real estate-related burdens and successful channel transformations [4].
东方雨虹:2024年三季报点评:积极清理包袱,现金流改善趋势不变