Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [2] Core Views - The company reported a revenue of 9.528 billion yuan for the first half of 2025, representing a year-on-year increase of 2.49%, while the net profit attributable to shareholders was 358 million yuan, up 3.95% year-on-year [9] - The company is experiencing stable growth in revenue and orders, with significant expansion in overseas markets, particularly in Southeast Asia [9] - The company is expected to achieve revenues of 19.511 billion yuan, 20.429 billion yuan, and 20.949 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 594 million yuan, 660 million yuan, and 737 million yuan for the same years [9] Financial Performance Summary - Revenue for 2023 is projected at 20.187 billion yuan, with a decline of 7.5% year-on-year, while the net profit is expected to be 1.024 billion yuan, down 19.6% [7] - The company’s earnings per share (EPS) for 2025 is estimated at 0.22 yuan, with a price-to-earnings (PE) ratio of 16.2 [7] - The return on equity (ROE) is projected to be 4.3% in 2025, with a price-to-book (PB) ratio of 0.7 [7] Revenue and Order Growth - The company’s decoration, curtain wall, and design businesses achieved revenues of 8.027 billion yuan, 689 million yuan, and 652 million yuan respectively in the first half of 2025, with year-on-year changes of +11.25%, -12.04%, and -8.76% [9] - New contracts signed in the first half of 2025 totaled 12.457 billion yuan, an increase of 2.2% year-on-year, with significant growth in the Guangdong and Sichuan regions [9] Overseas Market Expansion - The company has established a global network with Southeast Asia as its strategic focus, expanding into Central Asia, the Middle East, and Africa, with overseas revenue growth of nearly 29% year-on-year in the first half of 2025 [9] Profitability and Cash Flow - The company’s gross profit margin for the first half of 2025 was 13.71%, with a net profit margin of 3.76% [9] - Operating cash flow showed improvement, with a net outflow of 1.023 billion yuan, which is a reduction of 167 million yuan year-on-year [9]

Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company has shown continuous improvement in orders, indicating a turning point in operations. The revenue for 1H25 reached 9.528 billion RMB, a year-on-year increase of 2.49%, with a net profit attributable to shareholders of 358 million RMB, up 3.95% year-on-year [1] - The company’s decoration business revenue grew, with a notable recovery in the scale of income, attributed to a continuous increase in order growth over the past nine quarters [2] - The company achieved new signed orders of 12.46 billion RMB in 1H25, marking a year-on-year increase of 2.5%, with significant growth in orders from Guangdong and Sichuan regions [4] - The company maintains a target price of 4.31 RMB, reflecting a 20x PE valuation for 2025, with projected net profits of 574 million RMB for 2025 [5] Summary by Sections Financial Performance - In 1H25, the company reported a total revenue of 95.28 billion RMB, with a net profit of 3.58 billion RMB and a non-recurring net profit of 3.31 billion RMB, showing a year-on-year increase of 14.19% [1][2] - The comprehensive gross margin for 1H25 was 13.71%, a slight increase of 0.04 percentage points year-on-year, with the decoration and design business gross margins at 12.52% and 31.26%, respectively [2] Cost and Efficiency - The expense ratio for 1H25 was 7.68%, a decrease of 0.20 percentage points year-on-year, with improvements in accounts receivable turnover ratio to 0.74 times [3] - The company reported a net cash flow from operating activities of -1.023 billion RMB, which was a reduction in outflow by 167 million RMB year-on-year [3] Order and Market Dynamics - The company has signed new orders for nine consecutive quarters, with a significant increase in overseas revenue by nearly 29% year-on-year [4] - The company’s order growth is driven by enhanced regional focus and optimization of business structure, including urban renewal and clean technology development [4] Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are 574 million, 602 million, and 624 million RMB, respectively, with a CAGR of 4.28% [5] - The company is valued at a PE of 20x for 2025, with a target price set at 4.31 RMB, indicating a potential upside from the current market price [5]