DEHUA TB(002043) 国投证券·2025-04-25 07:02Investment Rating - The investment rating for the company is "Buy-A" with a target price of 12.75 CNY over the next six months [4][13]. Core Views - The company reported a revenue of 9.189 billion CNY in 2024, a year-on-year increase of 1.39%, but the net profit attributable to shareholders decreased by 15.11% to 585 million CNY due to increased asset and credit impairments [2][11]. - The company plans to distribute a cash dividend of 3.2 CNY per 10 shares, resulting in a high dividend payout ratio of approximately 84.21% of the net profit for 2024 [1][11]. - The company is focusing on expanding its market presence in rural areas and optimizing its custom home business structure, which is expected to drive long-term growth [10][11]. Revenue and Profitability - In 2024, the company achieved a revenue of 91.89 billion CNY, with a breakdown showing that decorative materials generated 74.04 billion CNY and custom home services generated 17.20 billion CNY [2][10]. - The gross profit margin for 2024 was 18.10%, with a notable improvement in Q4, where the margin reached 19.95% [3][9]. - The company’s operating cash flow for 2024 was 11.52 billion CNY, reflecting a year-on-year decrease of 39.68% due to mismatched payment schedules [8][11]. Future Projections - The company is projected to achieve revenues of 99.81 billion CNY, 107.79 billion CNY, and 116.88 billion CNY for 2025, 2026, and 2027 respectively, with corresponding net profits of 709 million CNY, 856 million CNY, and 1.032 billion CNY [11][14]. - The expected growth rates for revenue and net profit from 2025 to 2027 are 8.62%, 8.00%, and 8.43% for revenue, and 21.16%, 20.74%, and 20.50% for net profit [11][14]. Market Position and Strategy - The company is a leading player in the decorative materials sector, with a strong brand influence and a focus on optimizing channel operations [10][11]. - The company has expanded its retail channels significantly, with 5,522 stores by the end of 2024, including 2,152 in rural areas [10][11]. - The custom home segment is being optimized to focus on high-quality real estate clients while reducing risks associated with project scale [10][11].