Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 1.92 billion yuan for the first half of 2025, a year-on-year decrease of 18%. The net profit attributable to shareholders was -0.06 billion yuan, down 107% year-on-year, and the net profit excluding non-recurring items was -0.16 billion yuan, down 124% year-on-year [2][4]. - In the second quarter, the company achieved a revenue of 1.23 billion yuan, a year-on-year decrease of 19%, with a net profit of 0.54 billion yuan, down 27% year-on-year [2][4]. - The company expects net profits of approximately 0.13 billion yuan and 0.19 billion yuan for 2025 and 2026, corresponding to PE valuations of 43 and 28 times, respectively [6]. Summary by Sections Revenue and Profitability - The company's revenue is under pressure, with a significant decline in both total revenue and net profit. The revenue from the distribution channel decreased by 10% to approximately 1.59 billion yuan, while the engineering channel revenue fell by 43% to about 0.33 billion yuan [10]. - The gross margin for the first half of the year was approximately 25.0%, a decrease of 1.9 percentage points year-on-year. Despite efforts in cost management, the average selling price of products has declined, leading to pressure on gross margins [10]. Cash Flow and Receivables - The cash collection ratio has remained stable, with accounts receivable and notes receivable decreasing significantly to 0.65 billion yuan, down from 1.02 billion yuan year-on-year. The cash flow from operating activities was 0.09 billion yuan, a decrease of 0.28 billion yuan year-on-year [10]. Industry Outlook - The tile industry is experiencing a significant supply exit, with the production of building ceramics expected to decline by 12% in 2024 compared to the previous year. The number of large-scale enterprises in the industry has decreased from 1,048 in 2021 to 993 in 2024 [10].

Investment Rating - The industry investment rating is "Outperform the Market" with an expectation of over 10% relative increase in the industry index compared to the market in the next six months [7]. Core Insights - Online retail demand is expected to accelerate under domestic consumption stimulus policies, supported by trends towards smaller packages, ensuring a certain level of growth in industry volume. However, the price competition in the industry is unlikely to change in the short term, and the potential for price declines is limited due to cost constraints and regulatory guidance. Current valuations of major industry players are at relatively low historical levels, suggesting opportunities for valuation recovery [1][2]. Summary by Sections Online Retail Performance - In January-February 2025, the online retail sales of physical goods reached 1.86 trillion yuan, growing by 5% year-on-year, which is a decline of 1.5 percentage points compared to 2024. This accounted for 22.30% of total retail sales of consumer goods, down 4.5 percentage points from 2024 [2]. Express Delivery Volume and Revenue - The express delivery business revenue for January-February was 221.04 billion yuan, up 11.20% year-on-year, although the growth rate decreased by 2.6 percentage points compared to 2024. The business volume reached 28.48 billion pieces, a year-on-year increase of 22.40%, with a slight growth of 0.9 percentage points compared to 2024. The average price per piece was 7.76 yuan, further declining compared to 2024 [2]. Market Concentration and Pricing Trends - The market concentration index (CR8) for express delivery services reached 87.1% in February, indicating further concentration in the market. Major listed companies such as SF Express, Yunda, YTO Express, and Shentong Express reported business volumes of 2.246 billion, 3.823 billion, 4.114 billion, and 3.722 billion pieces respectively, with year-on-year growth rates of 16.7%, 26.5%, 21.3%, and 30.6%. The average prices per piece for these companies were 15.1, 1.99, 2.34, and 2.05 yuan respectively, showing year-on-year declines of 9.6%, 12.5%, 5.5%, and 7.3% [3].