DEHUA TB(002043) 国信证券·2024-08-28 03:46Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][4] Core Views - The company demonstrated resilient revenue growth with a 20.0% year-on-year increase in H1 2024, achieving revenue of 3.91 billion yuan, while the net profit attributable to shareholders decreased by 15.4% to 244 million yuan [1][4] - The company plans to distribute a mid-term dividend of 2.8 yuan per 10 shares (including tax), reflecting a high dividend payout ratio of 94.2% [1][4] - The growth in revenue is attributed to the expansion in rural markets and small B channel development, while the custom home segment continues to grow against market trends [1][4][6] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 3.91 billion yuan, up 20.0% year-on-year, with a net profit of 244 million yuan, down 15.4% [1][4] - The adjusted net profit was 235 million yuan, reflecting a 7.5% increase year-on-year, with an EPS of 0.35 yuan per share [1][4] - Q2 2024 revenue was 2.43 billion yuan, a 12.7% increase year-on-year, while net profit decreased by 27.3% to 160 million yuan [1][4] Business Segments - The decorative materials and custom home businesses generated revenues of 3.28 billion yuan and 590 million yuan, respectively, with year-on-year growth of 29.0% and a decline of 11.4% [1][4][6] - The decorative materials segment saw significant growth in board materials, with revenue increasing by 41.5% to 2.15 billion yuan [1][4][6] Cost and Cash Flow Management - The overall gross margin for H1 2024 was 17.5%, down 2.9 percentage points year-on-year, primarily due to changes in revenue structure [1][4] - The operating cash flow for H1 2024 was 280 million yuan, a decrease of 44% year-on-year, but Q2 showed a significant improvement with a cash flow of 1.16 billion yuan, up 101% year-on-year [1][4][6] Future Outlook - The company is optimistic about the growth potential from channel expansion in rural markets and small B channels, which are expected to drive the board materials business [1][4][6] - The EPS forecast for 2024-2026 has been adjusted to 0.84, 1.01, and 1.16 yuan per share, with corresponding PE ratios of 10.9, 9.1, and 8.0 times [1][4][6]