Investment Rating - The investment rating for the company is maintained as "Accumulate" with a target price of RMB 5.74 [7][8]. Core Insights - The company achieved a revenue of RMB 6.829 billion in 2024, a year-on-year decrease of 14.04%, while the net profit attributable to shareholders was RMB 44.07 million, an increase of 113.05% year-on-year [1]. - The overall gross margin showed a slight recovery, reaching 21.77% in 2024, up by 0.60 percentage points year-on-year, with the gross margins for waterproof rolls, coatings, and projects at 19.23%, 33.67%, and 11.42% respectively [2]. - The company is actively promoting the transfer of debt-receivable properties to ensure asset safety, with a net value of these properties increasing by 107% year-on-year to RMB 5.31 billion by the end of 2024 [3]. Summary by Sections Revenue and Profitability - In 2024, the revenue from waterproof rolls, coatings, and projects was RMB 35.55 billion, RMB 17.87 billion, and RMB 12.14 billion respectively, reflecting declines of 15.38%, 5.68%, and 17.45% year-on-year [2]. - The company’s comprehensive gross margin for Q1 2025 was 24.43%, benefiting from a slight decrease in costs and efficiency improvements [2]. Financial Performance - The company’s expense ratio increased to 19.49% in 2024, up by 2.91 percentage points year-on-year, primarily due to reduced revenue scale affecting dilution capacity [3]. - The net cash flow from operating activities for 2024 was RMB 316 million, a year-on-year increase of 64.5% [3]. Earnings Forecast and Valuation - The earnings per share (EPS) estimates for 2025, 2026, and 2027 are adjusted to RMB 0.23, RMB 0.33, and RMB 0.41 respectively, reflecting a downward revision of 12% and 21% for 2025 and 2026 [4]. - The company is assigned a price-to-earnings (PE) ratio of 25 times for 2025, with a target price of RMB 5.74, down from the previous estimate of RMB 6.56 [4].

Investment Rating - The investment rating for the company is "Buy" with a target price of 34.71 RMB [8][9]. Core Views - The company reported a revenue of 25.82 billion RMB and a net profit attributable to the parent company of 3.65 billion RMB for 2024, representing a year-on-year increase of 15.1% and 3.5% respectively. However, the Q4 results showed a revenue of 5.46 billion RMB and a net profit of 0.50 billion RMB, with a decline in net profit by 34.7% year-on-year due to increased sales and management expenses [1][2]. - The company is experiencing strong growth in overseas revenue, which reached 420 million RMB in 2024, up 87.6% year-on-year. The integration of the paint business is expected to enhance competitiveness in industrial coatings [2][3]. - The company is transitioning towards a comprehensive manufacturer and service provider in consumer building materials, benefiting from policies that stimulate demand in home decoration and renovation [4]. Summary by Sections Financial Performance - In 2024, the company achieved revenues of 25.82 billion RMB, with a net profit of 3.65 billion RMB. The Q4 results were below expectations, primarily due to increased expenses [1][5]. - The company’s main products, including gypsum board and waterproof materials, showed varied performance, with gypsum board revenue declining by 4.8% while coatings revenue surged by 328% [2][3]. Cost and Cash Flow - The company’s expense ratio increased to 14.3%, with sales and management expenses rising significantly. However, operating cash flow improved by 8.5% year-on-year, reaching 5.13 billion RMB [3][5]. - The company is optimizing its channel structure, which is expected to maintain strong cash flow levels [3]. Market Trends and Policies - Retail sales of building materials showed a positive growth trend, with a 0.1% year-on-year increase in January-February 2025, indicating a recovery in demand [4]. - The government’s initiatives to boost consumption are expected to further support the company’s growth in the building materials sector [4]. Profit Forecast and Valuation - The profit forecast for the company is adjusted to 4.51 billion RMB for 2025, reflecting a slight decrease in sales assumptions. The target price is set at 34.71 RMB, based on a 13x PE ratio for 2025 [5][8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.60 RMB [8][9]. Core Insights - The company reported a revenue of 28.06 billion RMB for 2024, a year-over-year decrease of 14.52%, and a net profit attributable to shareholders of 108 million RMB, down 95.24% year-over-year [1]. - The company is actively optimizing its revenue structure, with a notable decline in gross margin in Q4 attributed to increased sales rebates [2]. - The company has a strong cash flow position, with operating cash flow of 3.46 billion RMB for the year, up 64.4% year-over-year, and a cash dividend distribution rate of 4085% [4]. Summary by Sections Financial Performance - In 2024, the company achieved revenues of 28.06 billion RMB, with a significant decline in net profit to 108 million RMB [1]. - The revenue breakdown for key segments includes waterproof membranes (11.79 billion RMB), coatings (8.82 billion RMB), mortar powder (4.15 billion RMB), and waterproof construction services (1.58 billion RMB), all showing year-over-year declines [2]. - The overall gross margin for the year was 25.8%, a decrease of 1.9 percentage points compared to the previous year [2]. Cost Structure - The company experienced a rise in operating expense ratio to 19.3%, up 3.3 percentage points year-over-year, with increases in sales, management, and R&D expenses [3]. - The net profit margin for 2024 was 0.39%, down 6.5 percentage points year-over-year [3]. Cash Flow and Dividends - The operating cash flow for the year was 3.46 billion RMB, with a cash collection ratio of 105.5% [4]. - The company plans to distribute a cash dividend of 18.50 RMB per 10 shares, indicating a strong commitment to returning value to shareholders [4]. Earnings Forecast - The expected EPS for 2025, 2026, and 2027 are projected to be 0.68 RMB, 1.01 RMB, and 1.21 RMB respectively, reflecting adjustments due to ongoing impairment risks [5]. - The target price of 15.60 RMB corresponds to a PE ratio of 23 times for 2025, aligning with the average PE of comparable companies [5].