Investment Rating - The investment rating for the company is "Maintain Buy" [6] Core Views - The company has demonstrated resilience in its waterproof business despite a challenging environment in the domestic real estate and infrastructure sectors, with a focus on long-term development and maintaining operational quality [1][2] - The company has adjusted its profit forecasts downward due to the lack of significant improvement in terminal demand for plastic pipes, projecting net profits of 890 million, 990 million, and 1.09 billion for 2025-2027, respectively [4] Financial Performance Summary - In H1 2025, the company achieved revenue of 2.078 billion, a year-on-year decline of 11.33%, and a net profit attributable to shareholders of 271 million, down 20.25% [1] - The company's cash flow remains strong, with a net operating cash flow of 581 million, a year-on-year increase of 99.1%, primarily due to reduced raw material purchases [4] - The overall gross margin for H1 2025 was 40.5%, a decrease of 1.61 percentage points year-on-year, with PVC products showing a gross margin increase of 2.55 percentage points to 23.54% [3] Product Performance Summary - The PPR series products generated revenue of 933 million, down 13.04% year-on-year, while PE series products saw revenue of 411 million, down 13.28% [2] - The waterproof business showed steady growth, with an increase in service users and matching rates, while the water purification business is still undergoing adjustments [2] Cash Flow and Dividend Summary - The company completed a semi-annual dividend of 157 million, maintaining a payout ratio of 58%, consistent with the previous year's mid-term dividend operations [4]