Core Viewpoint - The credit rating agency maintains the long-term credit rating of Keshun Waterproof Technology Co., Ltd. at AA, with a stable outlook, despite challenges in the waterproof materials industry due to reduced downstream demand and increased competition [1][3]. Company Overview - Keshun Waterproof Technology Co., Ltd. is a leading manufacturer and seller of waterproof materials in China, with a production capacity of 317 million square meters of waterproof membranes and 500,000 tons of waterproof coatings as of the end of 2024 [4][10]. - The company has a strong brand recognition and technical advantage, being ranked second among the top 500 preferred suppliers in the waterproof materials category by the China Real Estate Association for 12 consecutive years [21][22]. Financial Performance - In 2024, the company achieved an operating revenue of 6.829 billion yuan, with a profit of 55 million yuan, marking a turnaround from previous losses [10][11]. - The company's total assets reached 14.044 billion yuan, with total liabilities of 5.769 billion yuan, resulting in a debt-to-asset ratio of 64.55% [6][11]. - The company has a significant short-term debt burden, with short-term liabilities accounting for 54.53% of total debt [6]. Industry Analysis - The waterproof materials industry is facing a downturn in demand due to a decline in housing construction area, which fell by 12.7% year-on-year in 2024 [19]. - The industry is experiencing increased concentration as smaller companies exit the market, leading to a more competitive landscape for larger firms [4][20]. - The price of upstream raw materials, particularly asphalt, has been on a downward trend, which may positively impact the profit margins of waterproof material manufacturers [17][20]. Future Outlook - The company is expected to maintain its leading position in the industry by capturing market share from smaller competitors that are exiting the market [4][20]. - The introduction of new regulations aimed at improving the quality of waterproofing in construction is anticipated to boost future demand for high-quality waterproof materials [20]. - The company plans to enhance its production capacity through investment projects, which are expected to significantly increase output once operational [4][10].