Core Viewpoint - The company has announced a shareholder return plan for the next three years (2025-2027) with a minimum dividend payout ratio of 80% or 0.45 CNY per share, whichever is higher, indicating a strong commitment to high dividends [1] Financial Performance - The company reported a net operating cash flow of 1.63 billion CNY in 2024, which is 2.5 times the net profit attributable to shareholders, and a total of 11.7 billion CNY in operating cash flow over the past decade [2] - The company has a low interest-bearing debt ratio of 9.8% as of Q1 2025, with cash and cash equivalents plus trading financial assets amounting to 4.51 billion CNY, which is 7.1 times the net profit for the previous year [2] Order Growth - The company achieved a 10.2% year-on-year growth in new orders in Q2, with total orders amounting to 8.5 billion CNY, driven by strong demand in the Middle East [3] - The company has a backlog of orders worth 33.3 billion CNY, which is 1.5 times the expected revenue for 2024, ensuring stable future performance [3] Product Strategy - The company is implementing a productization strategy, customizing curtain wall products for developed countries and has secured significant orders in Australia and for BIPV products [4] - The productization strategy is expected to drive profit growth, with sales orders for BIPV components already signed and international certifications obtained [4] Investment Outlook - The company forecasts net profits attributable to shareholders of 690 million CNY, 740 million CNY, and 790 million CNY for 2025-2027, with corresponding PE ratios of 12.2, 11.4, and 10.6 [4] - If the dividend yield shifts to 5%, the target market values for 2025-2027 are projected to be 11 billion CNY, 11.8 billion CNY, and 12.6 billion CNY, indicating significant market potential [4]

Core Viewpoint - The company is focusing on expanding its overseas business while optimizing resource allocation and enhancing core competitiveness to drive sustainable growth in the architectural decoration industry [2][5][6]. Industry Overview - The architectural decoration industry is experiencing increased market concentration and significant differentiation in competition due to macroeconomic factors and heightened client risk awareness [1]. - The domestic curtain wall industry is facing downward pressure and intensified competition, prompting the company to deepen its market penetration and stabilize its domestic base [2]. Domestic Market Strategy - The company is enhancing its internal decoration platform to improve profitability and promote sustainable development in the domestic interior decoration market [2]. - The focus is on creating an ecological development framework for interior decoration to ensure long-term growth [2]. Overseas Market Strategy - The company is prioritizing overseas markets, particularly in the Middle East, Southeast Asia, and developed regions like Australia and Europe, to support its growth strategy [2][3]. - The company aims to leverage its brand advantages to penetrate high-end markets in Singapore, the Philippines, and the Middle East [2]. Order Performance - The company has seen a significant increase in overseas curtain wall project orders, with a total of approximately RMB 10.69 billion in new orders for Q1 2025, including RMB 6.3 billion from the Middle East [5][6]. - The gross margin for overseas curtain wall projects exceeds 25%, compared to 15%-16% for domestic projects, indicating a positive impact on overall profitability as overseas revenue grows [5]. Future Outlook - The company plans to establish a dual-track development model combining project contracting and product sales to enhance its market position and drive high-quality growth [2][6]. - The company has set a target of RMB 20 billion in new orders for the Middle East in 2025, with a strong performance in the first half of the year already exceeding initial targets [6]. Financial Health - The company maintains a robust cash flow management strategy, achieving an average operating cash flow of RMB 11.19 billion over the past five years [9][10]. - The company has a history of stable cash dividends, with a total cash dividend payout of RMB 623 million for 2024, reflecting a high dividend yield of 9.7% [10].