SKSHU(SH:603737) HTSC·2026-03-05 05:12Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Insights - The company is expected to achieve a net profit attributable to shareholders of between RMB 760 million and RMB 960 million for the full year of 2025, representing a year-on-year increase of 128.96% to 189.21%. The non-recurring net profit is projected to be between RMB 550 million and RMB 750 million, reflecting a year-on-year increase of 273.57% to 409.42% [2] - The retail segment remains the main focus of the market, with total renovation demand expected to stabilize in 2027. The estimated total area for home decoration demand from 2026 to 2028 is approximately 1.8 to 1.9 billion square meters per year [2] - The company has set new five-year strategic goals, focusing on deepening its presence in the architectural coatings market and cultivating industrial coatings as a second growth curve. The "Immediate Living" model is a key strategy for the company [3] Financial Forecast and Valuation - The forecasted net profit attributable to the parent company for 2025-2027 is RMB 915 million, RMB 1.123 billion, and RMB 1.372 billion, respectively, with a compound annual growth rate of 60.47%. The corresponding EPS is projected to be RMB 1.24, RMB 1.52, and RMB 1.86 [4] - The target price for the company is set at RMB 53.19, based on a 35x PE valuation for 2026 [4][6]