SKSHU(SH:603737) Changjiang Securities·2025-08-17 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a revenue of 5.8 billion yuan in the first half of 2025, representing a year-on-year growth of 1%. The net profit attributable to shareholders was 440 million yuan, up 108% year-on-year, while the non-recurring net profit was approximately 290 million yuan, reflecting a growth of 268% [2][4]. - In the second quarter, the company reported a revenue of 3.7 billion yuan, which remained flat year-on-year, with a net profit of 330 million yuan, marking a 103% increase year-on-year, and a non-recurring net profit of approximately 310 million yuan, up 96% [2][4]. - The company’s gross profit margin improved to approximately 32.3% in the first half of the year, an increase of 3.7 percentage points year-on-year, with the second quarter gross margin reaching 33.1% [9]. Summary by Sections Financial Performance - The company’s revenue for the first half of 2025 was 5.8 billion yuan, with a net profit of 440 million yuan and a non-recurring net profit of approximately 290 million yuan [2][4]. - The second quarter saw a revenue of 3.7 billion yuan, with net profits and non-recurring net profits of 330 million yuan and approximately 310 million yuan, respectively [2][4]. - The gross profit margin for the first half was approximately 32.3%, with a notable increase in the second quarter [9]. Business Segments - The home decoration business showed resilience with a revenue of approximately 1.57 billion yuan, growing by 8% year-on-year, while the average price increased by 3% to 5.9 yuan/kg [9]. - The engineering wall paint revenue was 1.8 billion yuan, down 2% year-on-year, with a price drop of 10% [9]. - The waterproof membrane revenue fell significantly by 29% to approximately 460 million yuan, indicating competitive challenges in this segment [9]. Strategic Outlook - The company is positioned as a high-growth representative in the consumer building materials sector, with both revenue and operating net profit reaching new highs [9]. - The company is expected to generate over 2 billion yuan from three new business models by 2025, contributing approximately 15% to total revenue and 35-40% to profits [9]. - Forecasted net profits for 2025-2027 are projected at 1.01 billion yuan, 1.42 billion yuan, and 1.68 billion yuan, respectively [9].