亚士创能：主业仍承压，积极调结构

Investment Rating - The investment rating for the company is "Accumulate" with a target price of RMB 7.67 [2]. Core Views - The company reported a significant decline in revenue and net profit for H1 2024, with revenue at RMB 1.043 billion (down 29.86% year-on-year) and a net loss attributable to shareholders of RMB 191.34 million (down 148.80% year-on-year). However, Q2 showed signs of recovery with revenue of RMB 748 million (down 24.85% year-on-year, up 153.61% quarter-on-quarter) and a net profit of RMB 62.60 million (up 13.47% year-on-year, up 176.59% quarter-on-quarter) [2][3]. - The company is adjusting its earnings per share (EPS) forecasts for 2024-2026 to RMB 0.23, 0.34, and 0.58 respectively, reflecting a compound annual growth rate (CAGR) of 60.6% for net profit attributable to shareholders from 2024 to 2026 [2][3]. - The company is positioned as a leading enterprise in engineering coatings in the Shanghai region, indicating substantial growth potential, which justifies a PEG ratio of 0.55 for 2024 [2]. Summary by Sections Financial Performance - For H1 2024, the company achieved revenue of RMB 1.043 billion, a decrease of 29.86% year-on-year, and a net loss of RMB 191.34 million, down 148.80% year-on-year. The Q2 performance showed improvement with revenue of RMB 748 million and a net profit of RMB 62.60 million [2][3]. - The gross margin for H1 2024 was 23.12%, a decline of 10.83 percentage points year-on-year, primarily due to falling product prices and changes in revenue structure [3]. - The company’s operating cash flow was negative at RMB 217 million for H1 2024, mainly due to reduced cash receipts [4]. Business Segments - The company’s waterproofing business showed steady growth with revenue of RMB 1.4 billion, up 20.95% year-on-year, while the construction coatings and energy-saving segments saw declines of 41.4% and 13.7% respectively [3]. - The sales volume for waterproofing materials increased by 33% year-on-year, indicating strong demand in this segment [3]. Market Position and Strategy - The company has developed a comprehensive marketing network with 25,553 registered distributors, enhancing its ability to capitalize on opportunities in public infrastructure projects and housing construction [5]. - The company is focusing on optimizing its distributor structure and improving operational quality to strengthen its market position [5].