Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is currently experiencing pressure on performance as it remains at the bottom of the industry cycle, but it is actively expanding into overseas markets [4] - The company reported a revenue of 2.76 billion yuan for H1 2025, a year-on-year decrease of 14.2%, and a net profit attributable to shareholders of -30.43 million yuan, a year-on-year decline of 722.3% [4] - The forecast for net profit attributable to shareholders for 2025-2027 has been revised downwards, with expected figures of 62 million yuan, 123 million yuan, and 202 million yuan respectively [4] Financial Performance - In Q2 2025, the company achieved a revenue of 1.55 billion yuan, a quarter-on-quarter increase of 28.4%, and a net profit attributable to shareholders of 10.18 million yuan, a quarter-on-quarter increase of 5079.6% [4] - The company’s comprehensive gross margin for H1 2025 was 30.5%, a decrease of 0.9 percentage points year-on-year [5] - The company’s asset-liability ratio improved to 38.7%, a year-on-year decrease of 4.8 percentage points, indicating enhanced debt repayment capability [5] Product Segmentation - Revenue from various product segments for H1 2025 includes: - Windows and doors hardware: 1.14 billion yuan (down 17.6%) - Home products: 430 million yuan (down 27.7%) - Other construction hardware: 440 million yuan (down 16.0%) - Curtain wall components: 190 million yuan (up 7.8%) - Glass curtain wall components: 190 million yuan (up 6.3%) - Door control hardware: 160 million yuan (down 5.4%) - Stainless steel railing components: 110 million yuan (up 13.3%) [5] Overseas Market Expansion - The company’s overseas revenue reached 477 million yuan in H1 2025, a year-on-year increase of 30.75%, accounting for 17.32% of total revenue, an increase of 5.95 percentage points year-on-year [6] - The company has established nearly 20 overseas warehouses and has a sales network with over 5,000 personnel [6] Financial Projections - The projected earnings per share (EPS) for 2025-2027 are 0.17 yuan, 0.35 yuan, and 0.57 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 127.3, 63.8, and 38.9 [4][7] - The company’s revenue is expected to decline to 5.625 billion yuan in 2025, followed by a recovery to 6.060 billion yuan in 2026 and 6.760 billion yuan in 2027 [7]

Investment Rating - The investment rating for the company is "Recommended" (maintained) [1][5]. Core Views - The company continues to face pressure on its performance, with a year-on-year revenue decline of 14.2% in the latest report, resulting in a net loss of 0.3 million yuan compared to a profit of 489 thousand yuan in the same period last year [3][4]. - The company has successfully reduced operating expenses from 900 million yuan to 770 million yuan, although the revenue decline has kept the expense ratio stable year-on-year [4]. - The overseas business is growing rapidly, with a revenue increase of 30.75% compared to a domestic decline of 19.95%. The gross margin for overseas sales is higher at 34.26% compared to 29.56% domestically [4]. - Despite a slight decrease in operating cash flow, accounts receivable have improved, decreasing from 3.85 billion yuan to 3.21 billion yuan year-on-year [4]. Financial Summary - The company is expected to have net profits of 0.9 million yuan, 1.5 million yuan, and 2.4 million yuan for the years 2025 to 2027, respectively, down from previous forecasts of 2.0 million yuan, 2.7 million yuan, and 3.3 million yuan [5]. - The projected P/E ratios for 2025, 2026, and 2027 are 93 times, 55 times, and 34 times, respectively [5]. - Revenue forecasts for 2025 to 2027 are 5.974 billion yuan, 6.273 billion yuan, and 6.900 billion yuan, with expected year-on-year growth rates of -10.0%, 5.0%, and 10.0% [6][10]. - The gross margin is projected to be 30.6%, 31.0%, and 31.5% for the years 2025 to 2027 [10]. Key Financial Ratios - The company’s asset-liability ratio is projected to be 39.7%, 37.1%, and 37.3% for the years 2024, 2025, and 2026, respectively [10]. - The return on equity (ROE) is expected to improve from 1.6% in 2025 to 4.0% in 2027 [10]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.24 yuan, 0.42 yuan, and 0.67 yuan, respectively [10].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company experienced a decline in revenue and net profit in the first half of 2025, with revenue of 2.755 billion yuan, down 14.18% year-on-year, and a net profit of -30 million yuan, a decrease of 0.35 billion yuan [8][9] - Domestic real estate-related business is under pressure, while overseas growth is performing well, with overseas revenue increasing by 30.75% year-on-year [8][10] - The increase in raw material prices has pressured gross margins, leading to a decline in net profit due to reduced expense dilution [8][10] - The company is focusing on local operations overseas, which is expected to become a growth point [10] Financial Performance Summary - Revenue forecast for 2023A is 7.802 billion yuan, with a projected decline to 6.638 billion yuan in 2024A and further to 6.259 billion yuan in 2025E, before recovering to 6.639 billion yuan in 2026E and 7.120 billion yuan in 2027E [7] - Net profit is expected to decrease to 76 million yuan in 2025E, followed by increases to 114 million yuan in 2026E and 190 million yuan in 2027E [7] - Earnings per share (EPS) is projected to be 0.21 yuan in 2025E, 0.32 yuan in 2026E, and 0.54 yuan in 2027E [7] - The price-to-earnings (PE) ratio is forecasted to be 105.44x in 2025E, 70.04x in 2026E, and 42.22x in 2027E [7] Revenue Breakdown - In the first half of 2025, the revenue from various product categories showed significant declines: door and window hardware systems (-17.60%), home products (-27.69%), and other construction hardware (-16.00%), while door and window accessories increased by 7.79% [8][10] - Domestic revenue was 2.278 billion yuan, down 19.95%, while overseas revenue reached 477 million yuan, up 30.75% [8][10] Cost and Margin Analysis - The gross margin for the first half of 2025 was 30.37%, a decrease of 0.90 percentage points, primarily due to rising metal raw material prices [8][10] - The company reported a net cash flow from operating activities of -204 million yuan, indicating a cash outflow compared to the previous year [8][10]