Investment Rating - The investment rating for the company is "Accumulate" (Maintain) [6] Core Views - The company's performance remains under pressure, awaiting signs of a bottom [6] - The company is undergoing a transformation, focusing on "de-real estate + retail first" strategy to counteract pressures from the B-end market [8] - The company is gradually defining its second main business, aiming to create a synergistic model of "waterproofing + special mortar" to break regional market barriers and explore new growth areas [8] - Despite short-term pressures, the company is expected to enter a sustainable high-quality development phase due to strategic adjustments [8] Financial Summary - In Q1 2025, the company reported revenue of 5.95 billion yuan, a year-on-year decrease of 16.7%, and a net profit attributable to shareholders of 190 million yuan, down 44.7% year-on-year [8] - The company's gross profit margin decreased by 5.95 percentage points year-on-year, primarily due to lower market demand and intensified industry competition [8] - Short-term borrowings increased by 56.44% to 7.216 billion yuan, while long-term borrowings rose by 50.81% to 1.392 billion yuan, reflecting the company's efforts to optimize its debt structure [8] - The company has adjusted its profit forecasts for 2025-2027, with net profits projected at 1.131 billion yuan, 1.617 billion yuan, and 2.028 billion yuan respectively [8]