Core Insights - The "anti-involution" price adjustment has significantly benefited express delivery companies, with a 100% success rate in price increases at various outlets, contributing to higher profits during the Double Eleven shopping festival [1][6] - The overall volume of express deliveries has increased, with a notable rise in the value of goods being shipped, indicating a shift towards higher-quality consumption [6][10] Group 1: Market Trends - This year's Double Eleven shopping festival has a longer duration, with major platforms like JD.com and Douyin starting promotions early, leading to a more gradual increase in delivery volumes [1][2] - The first wave of deliveries during Double Eleven saw a year-on-year increase of 10-20% in volume, with some companies reporting a doubling of daily volumes compared to regular days [2][10] Group 2: Product Categories - The types of goods shipped during the first wave of Double Eleven include a significant proportion of beauty products, daily necessities, and fast-moving consumer goods, with brand clients showing notable growth [4][5] Group 3: Service Quality and Innovations - Companies are enhancing service quality through the implementation of "cloud warehouses," which allow for more efficient logistics and faster delivery times, addressing the diverse shopping behaviors of consumers [7][9] - The use of pre-packaging and advanced communication with clients has enabled companies to streamline operations and reduce reliance on temporary labor during peak periods [7][10] Group 4: Capacity Expansion and Cost Optimization - Express delivery companies are expanding their capacities and upgrading equipment to meet increasing demand, with some reporting an 80% increase in daily throughput after recent upgrades [10][11] - The optimization of single-package operating costs is expected to benefit outlets, allowing them to attract more clients and increase delivery volumes [11][13] Group 5: Competitive Landscape - The competition among express delivery companies is shifting from a focus on volume to a focus on value, emphasizing stability, intelligence, service experience, and network health [13] - Recent data indicates that the average price per package has risen above 2 yuan, with notable year-on-year increases, particularly for Shentong Express [13]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][29]. Core Views - The company experienced a revenue decline of 7.2% year-on-year in H1 2025, with total revenue reaching 3.22 billion yuan. The segments of waterproof membranes, waterproof coatings, and waterproof engineering construction reported revenues of 1.65 billion, 870 million, and 560 million yuan, respectively, showing declines of 9.8%, 9.2%, and an increase of 2.4% [1][9]. - The gross margin improved to 24.7%, up by 1.2 percentage points year-on-year, driven by the optimization of product structure and growth in higher-margin overseas and retail businesses [2][12]. - The company has reduced its net cash outflow from operating activities to 560 million yuan, a decrease of 870 million yuan compared to the same period last year, indicating improved cash flow management [3][22]. - The company has initiated plans for overseas production, completing the construction of a manufacturing base in Malaysia, which is expected to contribute to revenue growth [3][26]. Summary by Sections Financial Performance - In H1 2025, the company reported a net profit of 47 million yuan, down 50% year-on-year, with a basic earnings per share (EPS) of 0.04 yuan. The non-recurring profit and loss amounted to 61 million yuan, an increase of 9 million yuan year-on-year [1][9]. - The comprehensive gross margin for H1 2025 was 24.7%, with quarterly margins of 24.4% and 24.9% for Q1 and Q2, respectively [2][12]. - The company’s operating expenses ratio was 18.1%, an increase of 0.74 percentage points year-on-year, influenced by a decline in revenue [2][12]. Cash Flow and Receivables - The net cash outflow from operating activities was significantly reduced, with a cash collection ratio of 0.97 and a payment ratio of 1.25, indicating improved cash management [3][22]. - The total accounts receivable decreased to 5.06 billion yuan, down 430 million yuan year-on-year, reflecting the company's efforts to optimize its revenue structure and improve collection quality [3][22]. Future Outlook - The company is expected to benefit from price increases driven by industry consolidation and improved profitability, with EPS forecasts for 2025-2027 adjusted to 0.13, 0.24, and 0.34 yuan per share, respectively [3][26]. - The projected price-to-earnings (PE) ratios for 2025-2027 are 38.2, 21.5, and 15.2 times, indicating a potential recovery in profitability as growth stabilizes [3][26].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][26]. Core Views - The company experienced a revenue decline of 7.2% year-on-year in H1 2025, with total revenue reaching 3.22 billion yuan. The segments of waterproof membranes, waterproof coatings, and waterproof engineering construction reported revenues of 1.65 billion, 870 million, and 560 million yuan, respectively, showing declines of 9.8%, 9.2%, and an increase of 2.4% [9]. - The gross margin improved to 24.7%, up by 1.2 percentage points year-on-year, driven by the optimization of product structure and growth in higher-margin overseas and retail businesses [2][12]. - The company has reduced its net cash outflow from operating activities to 560 million yuan, a decrease of 870 million yuan compared to the previous year, indicating improved cash flow management [3][22]. Summary by Sections Financial Performance - In H1 2025, the company reported a net profit attributable to shareholders of 47 million yuan, down 50% year-on-year, with a basic earnings per share (EPS) of 0.04 yuan. The non-recurring net profit was -14 million yuan, a decline of 132.9% year-on-year [9]. - The comprehensive gross margin for H1 2025 was 24.7%, with quarterly margins of 24.4% and 24.9% for Q1 and Q2, respectively [2][12]. - The company’s operating expenses ratio was 18.1%, an increase of 0.74 percentage points year-on-year, influenced by a decline in revenue [2]. Cash Flow and Receivables - The company achieved a net cash flow from operating activities of -560 million yuan, significantly improved from the previous year's outflow [3][22]. - As of H1 2025, total receivables decreased to 5.06 billion yuan, down 430 million yuan year-on-year, reflecting efforts to optimize revenue structure and improve collection quality [3][22]. Future Outlook - The company is expected to benefit from price increases driven by industry trends and has initiated plans for overseas production, including the completion of a manufacturing base in Malaysia [26]. - The earnings per share (EPS) forecast for 2025-2027 is adjusted to 0.13, 0.24, and 0.34 yuan, with corresponding price-to-earnings (PE) ratios of 38.2, 21.5, and 15.2 times [26].