Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Views - The acquisition of 80% stakes in two companies enhances the company's market share in the waterproofing materials sector, particularly in North China. The acquisition price has been adjusted downwards due to the decline in the waterproofing industry's market conditions compared to 2022 [3][4]. - The company anticipates an increase in production capacity for various waterproofing materials, including 12 million square meters of asphalt waterproofing membranes, 4 million square meters of polymer waterproofing membranes, and 159,000 tons of waterproof coatings [3]. - The financial performance for the first half of 2025 shows a revenue of approximately 2.49 billion yuan, with a year-on-year growth of about 6%, and a net profit of 140 million yuan, also reflecting a 6% increase [3]. Summary by Sections Acquisition Details - The total price for acquiring 80% stakes in Tangshan Yuanda Hongyu Waterproof Materials Co., Ltd. and Suzhou Yuanda Hongyu Building Materials Technology Co., Ltd. is 418 million yuan. The adjusted acquisition price reflects the current market conditions in the waterproofing industry [2][4]. - The expected revenue and net profit for the Tangshan entity in 2024 are 820 million yuan and 80 million yuan, respectively, with a net profit margin of approximately 9.8% [4]. - The expected revenue and net profit for the Suzhou entity in 2024 are 199 million yuan and 2 million yuan, respectively, with a net profit growth of 40.5% [4]. Financial Projections - The company’s revenue projections for 2025-2027 are 25.99 billion yuan, 27.88 billion yuan, and 29.22 billion yuan, with year-on-year growth rates of 1%, 7%, and 5% respectively. The projected net profits for the same period are 3.15 billion yuan, 3.66 billion yuan, and 4.01 billion yuan, with growth rates of 14%, 7%, and 8% respectively [5][10]. - The price-to-earnings (P/E) ratios based on the closing price on November 26 are projected to be 13, 11, and 10 times for the years 2025, 2026, and 2027, respectively [5].

Core Insights - Zheng Encheng, General Manager of Shandong Jinlong Waterproof Technology Co., Ltd., has been driving industry development through technological innovation for over 20 years [1] - His recent achievements include multiple patents and publications in international journals, solidifying his leading position in the waterproof materials sector [1][5] Innovation Breakthroughs - Zheng's recent paper on cement-based crystalline waterproof materials demonstrated their excellent performance in underground structures, providing reliable technical support for waterproof engineering [2] - Future research will focus on extreme environmental conditions and long-term material performance to offer comprehensive solutions for complex waterproof projects [2] In-depth Analysis - A study on the durability of waterproof membranes analyzed key factors affecting their longevity, such as material aging and environmental influences [3] - The paper proposed scientific evaluation methods and strategies for optimizing membrane selection, construction processes, and maintenance management [3] Practical Innovations - Zheng's research on asphalt waterproof membranes detailed their application in various building structures, showcasing tailored solutions for different architectural features [4] - Specific case studies highlighted the importance of selecting appropriate membrane types and construction methods, particularly in critical areas like eaves and ridges [4] Academic Leadership - Zheng's appointment as an editorial board member for two international journals reflects his significant influence in the academic community [5] - His role will involve participating in peer review and topic planning, contributing to global academic exchange in the field of waterproof materials [5] Future Outlook - Zheng's continuous innovation and commitment to high-quality development in the waterproof materials sector are expected to yield further breakthroughs and solutions [6][7] - The industry anticipates his ongoing contributions to address new challenges and enhance the quality of construction in China and globally [7]