Investment Rating - The investment rating for the company is "Outperform the Market" [5][28]. Core Views - The company's retail fundamentals remain solid, with a steady increase in market share and a high dividend payout further enhancing investor returns. Despite a challenging demand environment, the company has managed to maintain a resilient revenue base [3][28]. - The company reported a revenue of 6.27 billion yuan in 2024, a year-on-year decrease of 1.8%, and a net profit attributable to shareholders of 0.95 billion yuan, down 33.5% year-on-year. The decline in profit is primarily attributed to increased marketing expenses and reduced investment income [1][9]. - The company has successfully expanded its product offerings and market presence, particularly in the pipeline segment, which saw a volume increase of 2.3% year-on-year, despite revenue declines in specific product categories [2][15]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 6.27 billion yuan, with a net profit of 0.95 billion yuan and an EPS of 0.61 yuan per share. The fourth quarter revenue was 2.49 billion yuan, reflecting a year-on-year decline of 5.26% [1][9]. - The overall gross margin for 2024 was 41.7%, down 2.6 percentage points year-on-year, with a significant increase in sales expenses by 14% due to heightened marketing efforts [3][20]. Product and Market Development - The company reported a total pipeline sales volume of 300,000 tons in 2024, with revenues from PPR, PE, and PVC products showing declines of 1.7%, 6.9%, and 8.1% respectively. However, the company has successfully increased its market share in the pipeline segment [2][15]. - The overseas business showed promising growth, generating 0.36 billion yuan in revenue, a year-on-year increase of 26.7%, with Singapore operations turning profitable [2][15]. Cash Flow and Dividends - The company generated an operating cash flow of 1.15 billion yuan in 2024, despite a 16.5% decline year-on-year. The cash collection ratio remained healthy, supporting a high dividend payout of 0.943 billion yuan, resulting in a dividend payout ratio of 99% [3][20][28].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][28][33] Core Views - The company's revenue showed relative resilience with a slight decline of 1.8% year-on-year, reaching 6.27 billion yuan, while net profit decreased significantly by 33.5% to 0.95 billion yuan, primarily due to increased market investment and reduced investment income [1][9] - The retail foundation remains solid, with steady market share growth and orderly overseas expansion, particularly in pipeline sales which increased by 2.3% year-on-year [2][15] - The company maintains a high dividend payout ratio of 99%, reflecting its commitment to shareholder returns despite profit pressures [3][28] Revenue and Profitability - In 2024, the company achieved a total revenue of 6.27 billion yuan, with a net profit of 0.95 billion yuan and an EPS of 0.61 yuan per share [1][9] - The gross margin for 2024 was 41.7%, down 2.6 percentage points year-on-year, with a significant increase in sales expenses by 14% due to heightened marketing efforts [3][20] - Operating cash flow was 1.15 billion yuan, a decrease of 16.5% year-on-year, but the cash collection ratio remained healthy [3][20] Product Performance - The company reported pipeline sales of 300,000 tons, with revenue contributions from PPR, PE, and PVC segments showing declines of 1.7%, 6.9%, and 8.1% respectively [2][15] - Other product lines achieved a revenue of 1.03 billion yuan, marking a year-on-year increase of 12.9% [2][15] Future Outlook - The company has adjusted its earnings forecasts for 2025-2026, expecting EPS of 0.66, 0.73, and 0.80 yuan per share, with corresponding PE ratios of 18.7, 16.8, and 15.3 [3][28] - The focus remains on high-quality development and enhancing market share in the retail sector, alongside a commitment to generous dividends [3][28]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, but the decrease in the main business revenue has narrowed compared to the previous year, indicating potential stabilization in the business fundamentals [1][5]. Financial Performance - In 2024, the company achieved total revenue of 6.3 billion yuan, a decrease of 2% year-on-year, and a net profit attributable to shareholders of 950 million yuan, down 33% year-on-year [1]. - For Q4 2024, the company reported total revenue of 2.5 billion yuan, a decline of 5% year-on-year, and a net profit of 330 million yuan, down 41% year-on-year [1]. - The company plans a cash dividend of 786 million yuan for 2024, with a total dividend payout of 943 million yuan, resulting in a dividend rate of 99% [1][5]. Business Segments - Revenue from PPR pipes, PE pipes, PVC pipes, and other products for 2024 was 2.94 billion yuan, 1.42 billion yuan, 830 million yuan, and 1.03 billion yuan respectively, with year-on-year changes of -2%, -7%, -8%, and +13% [2]. - The gross profit margin for these segments was 56%, 31%, 22%, and 32% respectively, with a decline in gross margins across all main business segments [2][3]. Profitability and Costs - The overall gross profit margin for the company in 2024 was 41.7%, down 2.6 percentage points year-on-year, with an increase in the expense ratio to 22.2% [3]. - 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 higher expense ratios [3]. Cash Flow and Financial Health - The net cash flow from operating activities for 2024 was 1.15 billion yuan, a decrease of 220 million yuan year-on-year, mainly due to the significant drop in net profit [4]. - The company's cash collection ratio was 109%, down 3 percentage points year-on-year, indicating stable cash flow management despite revenue declines [4]. Dividend Policy and Valuation - The company has maintained a strong dividend record since its listing, with a cumulative dividend payout ratio close to 80%, and the 2024 dividend rate reaching a record high of 99% [5]. - The current price corresponds to a dynamic P/E ratio of 19x for 2025, with adjusted net profit forecasts for 2025-2027 reflecting a downward revision of 34% [5].

Investment Rating - The report maintains a "Buy" rating for the company [5][9]. Core Views - The company has experienced a narrowing decline in revenue across its main business segments, with a proposed cash dividend of 7.86 billion yuan, resulting in a dividend payout ratio of 99%, the highest since its listing [5][9]. - The company aims for a revenue target of 65.8 billion yuan for 2025, reflecting a year-on-year growth of 5% [5]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 6.3 billion yuan, a decrease of 2% year-on-year, with net profit attributable to shareholders at 950 million yuan, down 33% [5][6]. - The fourth quarter of 2024 saw total revenue of 2.5 billion yuan, a decline of 5% year-on-year [5]. Main Business Segments - Revenue from PPR pipes, PE pipes, PVC pipes, and other products for 2024 was 2.94 billion, 1.42 billion, 830 million, and 1.03 billion yuan respectively, with year-on-year changes of -2%, -7%, -8%, and +13% [6]. - The retail business, primarily driven by PPR products, was less impacted compared to the engineering business, which saw a more significant decline [6]. Profitability and Costs - The company's gross margin for 2024 was 41.7%, down 2.6 percentage points year-on-year, with an increase in the expense ratio to 22.2% [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]. Cash Flow and Financial Health - The net cash flow from operating activities for 2024 was 1.15 billion yuan, a decrease of 220 million yuan year-on-year [8]. - The company maintained a healthy financial status, with accounts receivable at 540 million yuan and contract liabilities at approximately 380 million yuan by the end of 2024 [8]. Dividend Policy and Valuation - The company has a strong dividend history, with a cumulative payout ratio close to 80% since its listing, and the 2024 dividend payout ratio reaching 99% [9]. - The current price corresponds to a dynamic P/E ratio of 19x for 2025, indicating potential for value reassessment [9].

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].

Investment Rating - The report indicates a positive outlook for the real estate sector, emphasizing its role in boosting domestic demand and stabilizing the market [1][12]. Core Insights - The real estate market is transitioning back to its residential function, with significant declines in new home sales and construction activities projected for 2022-2024 [1][12]. - The implementation of new policies on May 17, 2024, aims to support the real estate market, including adjustments to loan rates and down payment requirements [1][12]. - Infrastructure projects are also highlighted as key drivers of domestic demand, particularly in regions like Xinjiang and Guangxi, with significant investments underway [2][13]. - The "Belt and Road" initiative remains a focal point for international expansion, with ongoing collaborations between China and Vietnam to enhance infrastructure connectivity [2][13]. Summary by Sections Weekly Discussion - The report discusses the importance of real estate in stimulating domestic demand, noting a shift towards residential needs and a significant drop in key market indicators [1][12]. - It highlights the recent government meetings aimed at stabilizing the real estate market and the potential impact of new policies on housing loans [1][12]. Cyclical Linkage - Cement prices have shown a year-on-year increase, with the national average price at 395 RMB/t, while glass prices have also seen slight increases [3][14]. - The report notes a stable demand for aluminum and steel, with expectations for continued high supply levels [3][14]. National Subsidy Tracking - Various regions have successfully implemented consumer subsidies, such as Shanghai's 1.8 billion RMB for home appliance upgrades, significantly boosting sales [4][15]. - The report suggests focusing on companies related to subsidized products in the construction materials sector [4][15]. Important Developments - The report mentions the strengthening of the strategic partnership between China and Vietnam, along with significant stock purchases by major shareholders in various companies [5][16]. - It emphasizes the government's commitment to stabilizing the stock market and supporting the real estate sector [5][16]. Market Performance (April 14-18) - The construction materials index experienced a slight decline, with specific segments like refractory materials and pipes performing better than others [17]. Construction Material Price Changes - Cement prices have slightly decreased in certain regions, while glass prices have shown minor increases, indicating a mixed market response [29][39]. - The report provides detailed statistics on the pricing trends and inventory levels for various construction materials [29][39].

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]