AUPU(SH:603551) Huachuang Securities·2025-08-28 12:02Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 16.1 yuan [2][7]. Core Insights - The company has shown good cost control, leading to an improvement in performance despite a decline in revenue due to the real estate market's downturn. The revenue for H1 2025 was 820 million yuan, a year-on-year decrease of 4.9%, while the net profit attributable to shareholders was 130 million yuan, an increase of 7.8% year-on-year [2][7]. - The decline in revenue is primarily attributed to a 21.3% year-on-year drop in the materials business, influenced by the low demand in the real estate sector, where new housing sales area decreased by 3.5% and sales value by 5.5% in the first half of 2025 [7]. - The company's gross margin for H1 2025 was 44.5%, down 1.5 percentage points year-on-year, with the appliance and materials segments showing margins of 50.5% and 16.8%, respectively [7]. - Effective cost management has led to an increase in profitability, with a net profit margin of 17.3% in Q2 2025, up 2.5 percentage points year-on-year, primarily due to a reduction in expense ratios [7]. Financial Summary - Total revenue projections for the company are as follows: 1,866 million yuan in 2024, 1,926 million yuan in 2025, 2,027 million yuan in 2026, and 2,154 million yuan in 2027, with corresponding year-on-year growth rates of -6.5%, 3.2%, 5.2%, and 6.3% [3][8]. - The net profit attributable to shareholders is projected to be 297 million yuan in 2024, 305 million yuan in 2025, 332 million yuan in 2026, and 358 million yuan in 2027, with growth rates of -3.9%, 2.6%, 8.9%, and 7.9% respectively [3][8]. - Earnings per share (EPS) are expected to increase from 0.76 yuan in 2024 to 0.92 yuan in 2027, with a price-to-earnings (P/E) ratio decreasing from 16 times in 2024 to 13 times in 2027 [3][8].