计提减值拖累业绩，轻装上阵行稳致远

Investment Rating - The report maintains a "Recommend" rating for the company [8][27] Core Views - The company's 2023 revenue reached 7 944 million yuan, a year-on-year increase of 3 7%, but net profit attributable to the parent company was -338 million yuan, a significant decline compared to the previous year [4] - In Q1 2024, revenue decreased by 20 4% year-on-year to 1 490 million yuan, with net profit attributable to the parent company dropping by 9 2% to 50 million yuan [4] - The company's performance was impacted by a substantial provision for impairment losses, totaling 820 million yuan, which increased by 560 million yuan compared to the previous year [4] - Despite the challenges, the company's gross margin improved by 2 2 percentage points to 23 8% in Q1 2024, indicating some operational resilience [4] - The company's collection ratio improved by 4 9 percentage points to 104% in 2023, although the payment ratio also increased by 8 5 percentage points to 109% [14] Financial Performance - The company's total assets in 2023 were 13 781 million yuan, with current assets accounting for 9 815 million yuan and non-current assets at 3 965 million yuan [10] - Total liabilities stood at 8 665 million yuan, with current liabilities at 5 953 million yuan and non-current liabilities at 2 712 million yuan [10] - The company's operating cash flow in 2023 was 180 million yuan, while investment cash flow was -1 768 million yuan, and financing cash flow was 1 665 million yuan [20] - The company's EPS in 2023 was -0 29 yuan, with a P/E ratio of -15 9 times and a P/B ratio of 1 1 times [14][26] Business Segments - In 2023, the company's revenue from waterproof membranes, waterproof coatings, waterproof engineering, and seismic isolation products accounted for 53%, 24%, 19%, and 4% of total revenue, respectively [24] - The gross margins for these segments were 18 2%, 31 6%, 14 2%, and 15%, respectively, with waterproof coatings showing a significant improvement of 5 6 percentage points [24] - The company's distribution business now accounts for over 50% of total revenue, with plans to further expand dealer networks and penetrate rural markets [24] Future Outlook - The company is expected to achieve net profits of 220 million yuan, 346 million yuan, and 418 million yuan in 2024, 2025, and 2026, respectively [14][27] - The company's gross margin is projected to improve gradually, reaching 22 7% by 2026, with net margins expected to recover to 4 9% [14][26] - The company's ROE is forecasted to improve from -6 7% in 2023 to 7 1% by 2026, indicating a potential recovery in profitability [26]