SKSHU(SH:603737) Hua Yuan Zheng Quan·2025-10-21 11:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company is experiencing a quarterly performance recovery, with a notable increase in revenue and net profit in the first three quarters of 2025 [5][6] - The paint business shows positive sales trends, while the waterproofing segment continues to decline, leading to an overall improvement in gross margin due to lower costs [6] - The company is expected to benefit from a gradual recovery in the home decoration industry as the real estate sector stabilizes [6] Financial Summary - For 2025, the company is projected to achieve a revenue of 13,016 million yuan, with a year-on-year growth rate of 7.52% [6][7] - The net profit attributable to shareholders is forecasted to be 802 million yuan in 2025, reflecting a significant year-on-year growth of 141.60% [6][7] - The earnings per share (EPS) for 2025 is estimated at 1.09 yuan, with a price-to-earnings (P/E) ratio of 43.37 [6][7] Market Performance - The company reported a revenue of 9.392 billion yuan in the first three quarters of 2025, marking a 2.69% increase year-on-year, with a net profit of 744 million yuan, up 81.22% [6] - The gross margin for the first three quarters of 2025 improved to 32.8%, attributed to a significant decrease in average procurement prices of key raw materials [6] - The operating cash flow for the first three quarters of 2025 was 1.088 billion yuan, an increase of 18.73% compared to the previous year [6]