SKSHU(SH:603737) KAIYUAN SECURITIES·2025-08-28 14:39Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's H1 2025 performance shows significant growth, with revenue reaching 5.816 billion yuan, a year-on-year increase of 0.97%, and a net profit attributable to shareholders of 436 million yuan, up 107.53% year-on-year [4] - The report highlights the positive impact of relaxed real estate policies and improved cash flow, leading to an upward revision of profit forecasts for 2025-2027 [4][5] - The company is expected to achieve net profits of 1.04 billion, 1.35 billion, and 1.77 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth of 213.5%, 29.8%, and 31.2% [4] Financial Performance Summary - In H1 2025, the company achieved a gross margin of 32.35%, an increase of 3.71 percentage points year-on-year, driven by competitive advantages and a decrease in raw material prices [6] - The company’s revenue from home decoration wall paint, engineering wall paint, substrates and auxiliary materials, and waterproof membranes for H1 2025 were 1.574 billion, 1.795 billion, 1.733 billion, and 460 million yuan respectively, with year-on-year changes of +8.43%, -2.26%, +10.4%, and -28.62% [5] - The average selling price of home decoration wall paint increased by 2.78% year-on-year, contributing positively to the gross margin [5] Valuation Metrics - The company’s projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.41, 1.83, and 2.40 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 34.5, 26.6, and 20.3 [7] - The projected return on equity (ROE) for 2025 is 28.1%, indicating strong profitability [7] - The company’s total market capitalization is approximately 35.932 billion yuan, with a current share price of 48.70 yuan [1]