SKSHU(SH:603737) Hua Yuan Zheng Quan·2025-08-18 08:58Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Views - The company is expected to benefit from its competitive advantages in the market and internal adjustments, with initial signs of performance improvement [6] - The company has shown resilience in its financial performance despite market challenges, with a notable increase in net profit and revenue in the first half of 2025 [8] Financial Performance Summary - In the first half of 2025, the company achieved revenue of 5.816 billion yuan, a year-on-year increase of 0.97%, and a net profit attributable to shareholders of 436 million yuan, a year-on-year increase of 107.53% [8] - The company's gross margin improved to 32.3%, up by 3.7 percentage points year-on-year, driven by product structure adjustments and a decrease in raw material costs [8] - The company’s operating cash flow increased significantly, reaching 351 million yuan, primarily due to improved receivables management [8] Earnings Forecast and Valuation - The forecasted net profit attributable to shareholders for 2025-2027 is 802 million, 1.001 billion, and 1.302 billion yuan, respectively, with corresponding EPS of 1.09, 1.36, and 1.77 yuan [8] - The current stock price corresponds to a P/E ratio of 42, 33, and 26 for 2025-2027, reflecting the company's potential for growth and valuation appeal in the market [8]