SKSHU(SH:603737) East Money Securities·2025-10-20 13:06Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [6]. Core Insights - The company has shown significant growth in its home decoration paint sales, with a nearly 30% year-on-year increase in Q3, reflecting effective channel expansion despite ongoing pressure in the real estate sector [5][6]. - The company's revenue for the first three quarters of 2025 reached 9.392 billion yuan, a year-on-year increase of 2.69%, while the net profit attributable to shareholders was 744 million yuan, up 81.22% year-on-year [5]. - The report highlights improvements in cash flow, with operating net cash flow increasing by 18.73% year-on-year to 1.088 billion yuan, and a collection ratio of 110.06%, up 5.63 percentage points [5]. Financial Summary - For the first three quarters of 2025, the company sold 426,000 tons of home decoration wall paint, a 13% increase year-on-year, with an average price of 5,853 yuan per ton, down 1.1% year-on-year [5]. - The gross margin improved by 4.15 percentage points to 32.81% due to a decrease in raw material prices, while the expense ratio decreased by 1.36 percentage points to 22.67% [5]. - The company forecasts net profits of 870 million yuan, 1.155 billion yuan, and 1.416 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 39.26, 29.56, and 24.11 [6][7].