Dongpeng Holdings(003012) 天风证券·2025-04-21 01:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company experienced a significant decline in revenue and profit in 2024, with operating income of 6.469 billion yuan, down 16.77% year-on-year, and a net profit attributable to shareholders of 328 million yuan, down 54.41% year-on-year [1][4]. - The company has implemented a stock incentive plan, indicating confidence in its long-term growth potential, with profit growth targets for 2025-2026 set at no less than 0%, 10%, and 15% compared to 2023 [1]. - The company is expected to gradually improve its market share in the medium to long term, especially if the real estate sector recovers [4]. Financial Performance - In 2024, the company’s gross margin was 29.7%, a decrease of 2.32 percentage points year-on-year, while the expense ratio increased to 21.31%, up 2.41 percentage points year-on-year [3]. - The company’s cash flow from operations (CFO) was 859 million yuan in 2024, a decrease of 907 million yuan year-on-year, with a cash collection ratio of 123.96% [3][14]. - The company’s revenue from tiles and sanitary ware in 2024 was 5.387 billion yuan and 916 million yuan, respectively, with year-on-year declines of 18.15% and 6.50% [2]. Market Position and Strategy - The company’s direct sales and distribution revenue accounted for 37.24% and 61.44% of total revenue in 2024, with the distribution channel's share increasing [2]. - The report highlights the importance of monitoring raw material prices, which may support gross margins in 2025 [2]. - The company’s marketing network covers the entire country, providing a solid foundation for future growth if the real estate market improves [4].