DEHUA TB(SZ:002043) Guotou Securities·2025-08-19 04:33Investment Rating - The investment rating for the company is "Buy-A" with a target price of 12.75 CNY over the next six months [4]. Core Views - The company reported a revenue of 3.634 billion CNY for H1 2025, a decrease of 7.01% year-on-year, while the net profit attributable to shareholders increased by 9.71% to 268 million CNY [2][3]. - The decline in revenue is attributed to a combination of decreasing demand and a high base from the previous year, where H1 2024 revenue grew by 19.77% [2]. - Despite the revenue drop, the company managed to improve its gross margin, which contributed to the net profit growth [2][3]. Summary by Sections Financial Performance - In H1 2025, the company achieved a gross margin of 18.27%, an increase of 0.8 percentage points year-on-year [3]. - The net profit margin for H1 2025 was 7.43%, up by 1.07 percentage points compared to the previous year [3]. - The company’s operating cash flow decreased by 61.39% year-on-year to 107 million CNY, primarily due to a significant drop in cash received from sales [9]. Business Segments - The decorative materials segment generated revenue of 2.985 billion CNY, down 9.05% year-on-year, with a notable decline in board revenue [2]. - The custom home segment saw a revenue increase of 4.46% to 621 million CNY, with retail sales of full-house customization growing by 3% [2]. Future Outlook - The company is expected to achieve revenues of 9.981 billion CNY, 10.779 billion CNY, and 11.688 billion CNY for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 8.62%, 8.00%, and 8.43% [11]. - The projected net profits for the same years are 709 million CNY, 856 million CNY, and 1.032 billion CNY, reflecting growth rates of 21.16%, 20.74%, and 20.50% respectively [11].