SKSHU(603737) KAIYUAN SECURITIES·2024-11-01 10:35Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The company has shown a significant improvement in cash flow, despite a decline in revenue and net profit due to a downturn in real estate sales and increased industry competition [2] - The average selling prices of certain products have rebounded, contributing positively to the company's financial performance [2][3] Financial Performance Summary - For Q1-Q3 2024, the company achieved revenue of 9.146 billion yuan, a year-on-year decrease of 2.81%, and a net profit attributable to shareholders of 410 million yuan, down 26.00% year-on-year [2] - The Q3 revenue was 3.385 billion yuan, a quarter-on-quarter decrease of 8.37%, while the net profit attributable to shareholders was 200 million yuan, an increase of 22.96% quarter-on-quarter [2] - The company expects net profits for 2024-2026 to be 640 million, 720 million, and 840 million yuan respectively, with year-on-year growth rates of 271.0%, 12.5%, and 16.5% [2][5] Product Performance Summary - Revenue from various product categories for Q1-Q3 2024 includes: - Home decoration wall paint: 2.228 billion yuan (+14.14% YoY) - Engineering wall paint: 2.979 billion yuan (-12.51% YoY) - Adhesives: 651 million yuan (+16.17% YoY) - Base materials and auxiliary materials: 1.879 billion yuan (+4.18% YoY) - Waterproof membranes: 1.002 billion yuan (+13.02% YoY) [3] - The average selling prices for home decoration wall paint and adhesives have increased significantly, contributing to a stable gross margin [3] Cost and Cash Flow Summary - The gross margin for Q1-Q3 2024 was 28.66%, a decrease of 2.67 percentage points year-on-year [4] - The operating cash flow for Q1-Q3 2024 was 916 million yuan, an increase of 53.24% year-on-year, with a cash collection ratio of 104.43% [4]