科顺股份：防水行业头部，综合优势突出

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Views - The company, Keshun Co., Ltd. (科顺股份), is a leading player in the waterproofing industry with significant competitive advantages. It has a comprehensive product range and a well-established distribution network, covering over 20,000 points across major economic regions in China [5][8] - In the first three quarters of 2024, the company reported total revenue of 5.14 billion yuan, a year-on-year decrease of 17.7%, while net profit attributable to shareholders reached 130 million yuan, an increase of 53.9% year-on-year. The revenue decline is narrowing, indicating potential recovery [2][17] - The company is focusing on expanding its dealer network and enhancing its market presence, particularly in emerging sectors such as affordable housing and urban renewal, which are expected to drive future revenue growth [2][10] Summary by Sections Financial Performance - In Q3 2024, the company achieved total revenue of 1.67 billion yuan, down 12.6% year-on-year, with a net profit of 30 million yuan, up 51.2% year-on-year. The overall revenue decline is showing signs of stabilization [2][17] - The gross margin improved by 1.9 percentage points to 23.0% in the first three quarters of 2024, driven by market expansion and product optimization efforts [2][18] - The company’s accounts receivable increased by 14.4% to 4.73 billion yuan, primarily due to the consolidation of a subsidiary and credit extensions to certain channel customers [2][18] Market Strategy - The company is actively developing its dealer network and targeting high-quality clients in state-owned enterprises, particularly in infrastructure and industrial construction sectors [2][10] - It is also leveraging new media platforms for marketing and responding to national policies like the Belt and Road Initiative to expand its international market presence [2][10] - The focus on urban renewal and old community renovations is expected to create new demand for waterproofing materials, benefiting the company as a leading player in the industry [10][13] Industry Outlook - The waterproofing industry is characterized by a high concentration of small enterprises, with significant room for consolidation as regulatory standards increase [13][20] - Recent government policies aimed at stabilizing the real estate market and promoting urban renewal are anticipated to support a recovery in downstream demand for waterproofing materials [10][17] - The company is expected to benefit from these trends, with projected revenue growth rates of 10.2% and net profit growth rates of 50.3% for 2025-2026 [2][20]