SKSHU(603737) ZHONGTAI SECURITIES·2024-11-03 11:17Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The retail business is developing steadily, and cash flow performance is impressive [1] - The company achieved a revenue of 91.5 billion yuan in Q3 2024, a year-on-year decrease of 2.8%, with a net profit attributable to the parent company of 2.0 billion yuan, down 42.8% year-on-year [1] - The company is expected to continue benefiting from the growth in retail channels and the increasing penetration of mid-to-high-end products, particularly in the repainting market for existing and second-hand homes [1] Summary by Relevant Sections Financial Performance - Revenue (million yuan): - 2022A: 11,338 - 2023A: 12,476 - 2024E: 12,483 - 2025E: 14,070 - 2026E: 16,064 - Net profit (million yuan): - 2022A: 330 - 2023A: 174 - 2024E: 554 - 2025E: 743 - 2026E: 940 - Earnings per share (yuan): - 2023A: 0.33 - 2024E: 1.05 - 2025E: 1.41 - 2026E: 1.78 [1][2] Market Trends - The retail business is thriving, with a continuous optimization of product structure. The revenue from home decoration wall paint has grown against the trend, mainly benefiting from price increases [1] - The company’s gross profit margin and net profit margin are approximately 28.7% and 4.4%, respectively, showing improvement in profitability [1] Future Outlook - The company is expected to maintain growth in its paint business, supported by the expansion of retail channels and the enhancement of product offerings [1] - The report adjusts profit forecasts based on recent market conditions and the company's development plans, indicating a positive outlook for the upcoming years [1][2]