伟星新材：C端塑管龙头经营韧性突出，高ROE高分红财务指标亮眼

Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 20.02 CNY, while the current stock price is 16.45 CNY [1][5]. Core Views - The company, Weixing New Materials, is a leading player in the high-end retail plastic pipe market in China, demonstrating strong operational resilience and high return on equity (ROE) along with impressive dividend metrics [1][5]. - The company has maintained positive growth in its revenue and net profit over the past decade, even amidst significant fluctuations in the real estate sector [1][16]. - The "Same Circle" strategy has been effective in expanding the company's product offerings and market presence, particularly in the waterproofing and water purification sectors [2][5]. Company Overview - Weixing New Materials specializes in high-end plastic pipes, including PPR, PVC, and PE pipes, with a significant market share in the domestic PPR pipe sector [10][12]. - The company has a strong brand reputation and has been recognized for its quality and service, which contributes to its competitive advantage [2][10]. - The company has implemented a service model called "Star Housekeeper," enhancing customer loyalty and facilitating smoother price transmission [2][10]. Business Development - The retail segment of the company has shown remarkable resilience, with a compound annual growth rate (CAGR) of 14.55% in revenue from 2010 to 2023 [16]. - The company has successfully diversified its product lines, with rapid growth in new categories such as waterproofing and water purification, contributing to overall revenue growth [2][5][20]. - The revenue from the PPR segment has increased from 21.92 billion CNY in 2017 to 29.90 billion CNY in 2023, although its share of total revenue has decreased due to the rapid growth of new business segments [20][21]. Financial Analysis - The company has maintained a gross margin above 40% for most years, with PPR pipes achieving a gross margin of over 58% in 2023 [23][29]. - The ROE has consistently remained above 25% from 2016 to 2023, significantly outperforming the average in the consumer building materials sector [29][31]. - The company has a strong cash flow position, with operating cash flow consistently net inflow, and a high dividend payout ratio of 75.56% [5][32]. Industry Context - The real estate sector's policy easing is expected to support sales recovery, which will benefit the retail demand for the company's products [2][5]. - The demand for home renovation and improvement products is anticipated to grow, driven by urbanization and the increasing focus on home quality [2][5].