Investment Rating - The investment rating for the company is "Buy" (maintained) [3][8] Core Views - The company reported a revenue of 2.078 billion yuan for the first half of 2025, a year-on-year decrease of 11.33%, and a net profit attributable to shareholders of 271 million yuan, down 20.25% year-on-year [4] - The company is focusing on its "concentric circle" strategy to extend its industrial chain, particularly in waterproofing and water purification, while facing pressure from the main business due to a sluggish market [5] - The internationalization strategy is being advanced, with overseas revenue reaching 148 million yuan, a decrease of 12.03% year-on-year, attributed to weakened demand in some export markets and intensified competition [5] Financial Performance Summary - The company achieved a revenue of 6.378 billion yuan in 2023, with a projected decline to 5.821 billion yuan in 2025, reflecting a year-on-year decrease of 7% [3] - The net profit attributable to shareholders is expected to decline from 1.432 billion yuan in 2023 to 823 million yuan in 2025, representing a year-on-year decrease of 14% [3] - The gross profit margin for the first half of 2025 was 40.50%, a decrease of 1.61 percentage points year-on-year [5] - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares to all shareholders [5] Earnings Forecast - The projected earnings per share (EPS) are expected to decrease from 0.90 yuan in 2023 to 0.52 yuan in 2025, with a slight recovery to 0.59 yuan by 2027 [3] - The price-to-earnings (P/E) ratio is projected to be 20.9 in 2025, indicating a valuation adjustment in response to declining earnings [3] Market Context - The company is facing intensified competition in the building materials sector, with major players increasing their market presence, leading to further pressure on profitability [5] - The overall market demand remains weak, impacting the company's revenue and profit margins [5]