东方雨虹：坚定推进业务结构转型，经营质量不断改善

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the benchmark index within the next 6 to 12 months [5]. Core Views - The company reported a significant decline in revenue and net profit for the first three quarters of 2024, with revenue down 14.44% year-on-year and net profit down 45.73% year-on-year [1]. - Despite the challenging market conditions, the company is transitioning its sales model from a focus on large real estate clients to a more diversified approach targeting small businesses and individual consumers, which has improved operational quality [1]. - The company is positioned as a leader in the waterproofing industry, with ongoing optimization of its channel structure and a focus on international expansion, which is expected to provide growth opportunities despite current demand pressures [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 21.699 billion, net profit of 1.277 billion, and net profit excluding non-recurring items of 1.099 billion, reflecting year-on-year declines of 14.44%, 45.73%, and 49.41% respectively [1]. - The third quarter alone saw revenue of 6.480 billion, net profit of 0.334 billion, and net profit excluding non-recurring items of 0.263 billion, with year-on-year declines of 23.84%, 67.23%, and 71.69% respectively [1]. - The overall gross margin for the first three quarters was 29.13%, with a slight year-on-year increase of 0.07 percentage points [1]. Business Transformation - The company has shifted its sales strategy to focus on small businesses and individual consumers, with these segments now accounting for 80% of revenue, while revenue from large real estate clients has decreased by over 60% [1]. - The cash flow from operating activities for the first three quarters increased by 89.66% year-on-year, with a cash collection ratio of 1.15 in the third quarter [1]. Market Position and Future Outlook - The company is leveraging its market leadership in the waterproofing sector to enhance its channel structure and expand into new product categories, achieving revenue growth in challenging market conditions [1]. - The report anticipates that the company will benefit from industry supply adjustments, channel optimization, and international market expansion, providing a favorable growth outlook despite current demand pressures [1].