Investment Rating - The report maintains a "Buy" rating for the company [5][9]. Core Views - The company reported a total revenue of 6.3 billion yuan and a net profit attributable to shareholders of 0.95 billion yuan for 2024, reflecting a year-on-year decline of 2% and 33% respectively. The company plans to distribute a cash dividend of 7.86 billion yuan, resulting in a dividend payout ratio of 99%, which is an increase of 11 percentage points year-on-year [5][9]. - The company aims for a revenue target of 6.58 billion yuan for 2025, representing a 5% year-on-year growth [5][9]. Summary by Sections Business Performance - The company experienced a smaller decline in revenue across its three main business segments, with revenues for PPR pipes, PE pipes, PVC pipes, and other products reported at 2.94 billion, 1.42 billion, 0.83 billion, and 1.03 billion yuan respectively, showing year-on-year changes of -2%, -7%, -8%, and +13% [6]. - The overall decline in revenue is attributed to weak downstream demand, with retail business, primarily focused on PPR products, being less affected compared to engineering business [6]. Profitability Analysis - The company's gross margin for 2024 was 41.7%, down by 2.6 percentage points year-on-year, with all main business segments experiencing a decline in gross margin [7]. - The net profit margin attributable to shareholders was 15.2%, a decrease of 7.3 percentage points year-on-year, primarily due to lower gross margins and increased expense ratios [7]. Financial Health - The company reported a net cash flow from operating activities of 1.15 billion yuan for 2024, a decrease of 0.22 billion yuan year-on-year, mainly due to the significant drop in net profit [8]. - The accounts receivable at the end of 2024 stood at 0.54 billion yuan, showing a slight decrease, while contract liabilities were approximately 0.38 billion yuan, also reflecting a decline [8]. Dividend and Valuation - The company has maintained a strong dividend record since its listing, with a cumulative dividend payout ratio close to 80%. The 2024 dividend payout ratio reached a record high of 99%, corresponding to a dividend yield of approximately 4.7% [9]. - Based on the 2024 financial data and industry demand forecasts, the company’s net profit estimates for 2025 and 2026 have been adjusted to 1.05 billion yuan and 1.11 billion yuan respectively, with a new estimate for 2027 at 1.20 billion yuan [9].

Core Insights - The company reported a revenue of 6.267 billion, net profit attributable to shareholders of 0.953 billion, and net profit excluding non-recurring items of 0.917 billion for the year 2024, reflecting year-on-year declines of -1.75%, -33.49%, and -28.08% respectively [1] - In Q4 2024, the company achieved revenue of 2.494 billion, net profit attributable to shareholders of 0.329 billion, and net profit excluding non-recurring items of 0.305 billion, with year-on-year declines of -5.26%, -41.09%, and -28.72% respectively [1] - The company maintains a strong retail moat, with its core PPR category providing robust support despite a challenging market environment characterized by increased competition and pressure on consumer spending [1] Financial Performance - The company experienced a significant decline in profits, attributed to an increase in sales expenses by 0.117 billion, primarily due to higher employee compensation and marketing expenses [2] - Asset impairment losses increased to 0.086 billion, mainly due to an increase in goodwill impairment provisions related to previous acquisitions [2] - The company achieved a high dividend payout ratio of 99% in 2024, reflecting confidence in sustained high-quality development [2] Future Outlook - Revenue projections for 2025-2027 are estimated at 6.28 billion, 6.78 billion, and 7.499 billion, with year-on-year growth rates of +0.22%, +7.95%, and +10.61% respectively [3] - Net profit attributable to shareholders is expected to reach 1.024 billion, 1.167 billion, and 1.292 billion for the same period, with growth rates of +7.53%, +13.88%, and +10.77% respectively [3] - The company is expected to maintain a strong investment rating due to its deep barriers to entry and high dividend yield [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5]. Core Views - The company, Weixing New Materials (002372.SZ), reported a revenue of 6.267 billion yuan in 2024, a year-on-year decline of 1.75%, and a net profit attributable to shareholders of 953 million yuan, down 33.49% year-on-year [3][5]. - Despite facing unprecedented challenges in the plastic pipeline industry due to complex international situations and insufficient domestic demand, the company has managed to steadily increase its retail market share [5]. - The company is focusing on its core pipeline business while promoting rapid growth in waterproof and water purification segments, aiming to enhance its market presence [5]. Financial Performance Summary - In 2024, the company experienced a revenue decline of 1.75% compared to 2023, with a total revenue of 6.267 billion yuan [6]. - The net profit for 2024 was 953 million yuan, reflecting a significant decrease of 33.49% from the previous year [6]. - The company anticipates revenue growth rates of 5.09%, 5.96%, and 6.13% for the years 2025, 2026, and 2027, respectively [5][6]. - The projected net profit for 2025 is 1.036 billion yuan, with an expected increase in subsequent years [6]. Valuation Metrics - The current price of the company's stock is 12.30 yuan, with a market capitalization of approximately 19.58 billion yuan [3]. - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 18.9, 16.6, and 14.9, respectively [5][6]. - The average P/E ratio for comparable companies in 2025 is estimated at 27.7 [5].

证券研究报告 | 行业周报 gszqdatemark 2025 04 20 年 月 日 建筑材料 关注内需刺激主线，等待政策落地 2025 年 4 月 14 日至 4 月 18 日建筑材料板块（SW）下跌 0.02%，其中 水泥（SW）下跌 0.09%，玻璃制造（SW）下跌 0.15%，玻纤制造（SW） 下跌 1.79%，装修建材（SW）上涨 0.73%，本周建材板块相对沪深 300 超额收益-0.38%。本期建筑材料板块（SW）资金净流入额为 0.02 亿元。 【周数据总结和观点】 本周国常会指出"要持续稳定股市，持续推动房地产市场平稳健康发展"， "扩大有效投资，大力提振民间投资积极性"等，后续内需刺激有望加码。 根据 wind 统计，2025 年 3 月地方政府债总发行量 9788.03 亿元，发行金 额同比 2024 年 3 月增长 55.5%，截至目前，2025 年一般债发行规模 0.47 万亿元，同比-0.10 万亿元，专项债发行规模 2.78 万亿元，同比+1.61 万 亿元。化债下加码政府财政压力有望减轻，企业资产负债表也存在修复的 空间，市政工程类项目有望加快推进，市政管网及减隔震实物工作量 ...

Investment Rating - The investment rating for the company is "Maintain Buy" [6] Core Views - The company has demonstrated resilience in its retail pipeline business, achieving a market share increase despite a challenging external environment. The retail segment's revenue for PPR products was 2.939 billion, showing a slight decline of 1.72% year-on-year, while the overall revenue for the company decreased by 1.75% to 6.267 billion [2][5] - The company has maintained a high dividend payout, with a total dividend of 943 million for the year, achieving a payout ratio of 99%, marking a historical high in returns to shareholders [4] Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 6.267 billion, a year-on-year decline of 1.75%, and a net profit attributable to shareholders of 953 million, down 33.49% year-on-year. The adjusted net profit was 917 million, a decrease of 28.08% [1][5] - The fourth quarter alone saw revenue of 2.494 billion, a decline of 5.26%, with a net profit of 329 million, down 41.09% year-on-year [1] Business Segments - The retail business showed resilience, with PPR product revenue at 2.939 billion, only slightly down by 1.72%. However, the engineering segment faced challenges, with PE and PVC product revenues at 1.423 billion and 827 million, down 6.9% and 8.09% respectively [2] - The company achieved overseas revenue of 358 million, a growth of 26.65%, supported by operations in Thailand and Singapore [2] Profitability and Margins - The overall gross margin for 2024 was 41.72%, a decrease of 2.6 percentage points. The decline in margins was attributed to competitive pricing pressures, although core retail product prices remained stable [3] - The net profit margin for the year was 15.32%, down 7.59 percentage points year-on-year, while the adjusted net profit margin was 14.63%, down 5.36 percentage points [3] Cash Flow and Dividends - The company reported a net operating cash flow of 1.147 billion, with a cash conversion ratio of 1.2, indicating strong cash flow performance [4] - The total dividend for the year was 943 million, with a plan for a year-end dividend of 786 million, reflecting a commitment to high shareholder returns [4] Future Earnings Forecast - The company has adjusted its earnings forecast for 2025-2027, expecting net profits of 1.02 billion, 1.13 billion, and 1.25 billion respectively, with corresponding P/E ratios of 19, 17, and 16 [4][5]

Investment Rating - The investment rating for the company is "Maintain Buy" [6] Core Views - The company achieved a revenue of 6.267 billion yuan in 2024, a year-on-year decline of 1.75%, and a net profit attributable to shareholders of 953 million yuan, down 33.49% year-on-year [1] - Despite the overall revenue decline, the retail segment showed resilience, with PPR series products generating 2.939 billion yuan in revenue, a slight decrease of 1.72%, while the company increased its market share in the retail sector [2] - The company plans to maintain high dividend payouts, with a total dividend of 943 million yuan for the year, achieving a payout ratio of 99% [4] Financial Performance - The company's comprehensive gross margin for 2024 was 41.72%, a decrease of 2.6 percentage points year-on-year, primarily due to price adjustments in response to intense competition [3] - Operating cash flow for 2024 was 1.147 billion yuan, with a net profit cash conversion ratio of 1.2, indicating strong cash flow performance [4] - The company expects net profits for 2025-2027 to be 1.018 billion yuan, 1.126 billion yuan, and 1.252 billion yuan, respectively, with corresponding P/E ratios of 19, 17, and 16 [4][5] Market Position - The company has expanded its market share in the retail pipeline sector despite a challenging external environment, with overseas revenue growing by 26.65% to 358 million yuan [2] - The engineering segment faced challenges due to macroeconomic conditions, with PE and PVC series products generating revenues of 1.423 billion yuan and 827 million yuan, down 6.9% and 8.09% year-on-year, respectively [2] Dividend Policy - The company has set a record high for dividend payouts, with a total of 943 million yuan for the year, reflecting its commitment to returning value to shareholders [4]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Views - The company's performance meets expectations, and it is waiting for signs of a bottoming out [6] - The company is positioned as a leader in the plastic pipe retail market, benefiting from domestic demand policies and high dividend yields, which enhance its defensive attributes [8] Financial Summary - The company reported a revenue of 6,267 million RMB in 2024, a decrease of 1.75% year-on-year, with a net profit attributable to shareholders of 953 million RMB, down 33.49% year-on-year [8] - The company’s PPR series revenue was 29.39 billion RMB, with a gross margin of 56.47%, while the PE series revenue was 14.23 billion RMB, with a gross margin of 31.40% [8] - The company expects net profits of 1,000 million RMB, 1,102 million RMB, and 1,219 million RMB for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.63, 0.69, and 0.77 RMB [8][9] Market Performance - The company’s sales expenses increased significantly, leading to a pressure on profitability, with a total profit margin of 15.32% in 2024 [8] - The company has a high dividend payout ratio of 99% for 2024, resulting in a dividend yield of 4.75% [8] Earnings Forecast - The company’s revenue is projected to grow to 6,612 million RMB in 2025, with a year-on-year growth rate of 5.51% [9] - The expected operating profit for 2025 is 1,197 million RMB, reflecting a growth rate of 4.89% [9]

Group 1: Company Performance Overview - In 2024, the company's revenue was 6.267 billion yuan, a decrease of 1.75% compared to the previous year [2] - The net profit attributable to shareholders was 0.953 billion yuan, down 33.49% year-on-year [3] - Despite a significant decline in demand and intense competition, the company maintained a relatively stable sales revenue, particularly in the retail sector, which saw a steady increase in market share [3] Group 2: Market Environment and Challenges - The external environment in 2024 became increasingly complex, with significant uncertainties in the international landscape and insufficient domestic demand [2] - The construction materials industry faced fierce competition, with many engineering competitors entering the retail market, leading to a price war [2] - The company experienced challenges due to decreased investment demand in real estate and infrastructure [2] Group 3: Strategic Focus and Future Outlook - The company emphasized "sustainable development" and focused on "strategic concentration" and "transformation and upgrading" to respond to market changes [2] - For 2025, the company aims for a revenue growth target of approximately 5%, with similar growth targets for retail and engineering businesses [6] - The retail business is expected to show stronger resilience, while the engineering business is more susceptible to macroeconomic conditions [6] Group 4: Dividend Policy and Financial Management - The company's dividend policy is stable and transparent, adhering to the company charter and future shareholder return plans [4] - In 2024, the company maintained a high level of dividend distribution, reflecting its commitment to returning value to investors [3] - The company has implemented strict measures for goodwill impairment, with provisions of 21.26 million yuan for Guangzhou Hexin and 52.71 million yuan for Zhejiang Kairui [4]

Group 1: Company Performance Overview - In 2024, the company achieved a revenue of 6.267 billion yuan, a decrease of 1.75% compared to the previous year [3] - The net profit attributable to shareholders was 0.953 billion yuan, down 33.49% year-on-year, primarily due to increased marketing expenses and reduced investment income from joint ventures [3] - Despite a challenging market environment, the company maintained a steady retail market share and a relatively stable profit level [4] Group 2: Market Challenges - The construction materials industry faced significant challenges, including a decline in demand from real estate and infrastructure investments, leading to intensified competition and price wars [3] - The overall market demand remained weak, with no significant improvement observed in the first quarter of 2025 [8] Group 3: Strategic Focus and Future Plans - The company aims for a revenue target of 6.580 billion yuan in 2025, with costs and expenses controlled around 5.350 billion yuan [5] - Key strategies include focusing on retail business, enhancing market share, and advancing internationalization efforts [5] - The company plans to maintain a high dividend level, reflecting its commitment to returning value to investors [9] Group 4: Policy Impact and Business Adaptation - The "old-for-new" policy has minimal direct impact on the company's core products, although some water purification products are involved in subsidy programs [6] - The influence of the "underground pipeline" policy on business is contingent on local government implementation, with no significant changes noted so far [7]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a slight decline in revenue for 2024, with total revenue of 6.267 billion yuan, down 1.75% year-on-year, and a net profit of 953 million yuan, down 33.49% year-on-year [1][6] - The company has a strong dividend policy, with nearly 100% cash dividends distributed to shareholders, indicating a commitment to returning value to investors [5] - The company aims for a revenue target of 6.580 billion yuan in 2025, representing a year-on-year increase of 4.99% [5] Revenue Breakdown - The revenue from PPR, PE, PVC, and other products for 2024 was 2.939 billion yuan, 1.423 billion yuan, 0.827 billion yuan, and 1.033 billion yuan respectively, with year-on-year changes of -1.72%, -6.90%, -8.09%, and +12.94% [2] - The gross profit margins for these products were 56.47%, 31.40%, 21.75%, and 31.50% respectively [2] Market Performance - The company achieved a sales volume of 300,000 tons for plastic pipes in 2024, reflecting a year-on-year increase of 2.3%, indicating an increase in market share [3] - The overseas revenue grew by 26.65% year-on-year, contributing to the overall revenue despite domestic challenges [2] Financial Metrics - The company’s operating cash flow for 2024 was 1.147 billion yuan, down 16.52% year-on-year, with a cash collection ratio maintained above 100% [4] - The projected earnings per share (EPS) for 2025 is 0.69 yuan, with a price-to-earnings (PE) ratio of 18.02 based on the closing price of 12.44 yuan [6][8]