WEIXING NBM(002372) 民生证券·2024-08-24 09:36Investment Rating - The report maintains a "Recommend" rating for Weixing New Materials (002372 SZ) [5][6] Core Views - The company demonstrates resilience in maintaining gross margin levels despite market challenges, with a focus on high-quality development and strong repurchase logic in the second-hand housing era [5] - Weixing New Materials continues to deepen its retail strategy, invest in marketing, and advance its "Concentric Circle" and "Big System" strategies, leading to accelerated growth in customer value and brand strength [5] - The company's 2024-2026 net profit attributable to shareholders is forecasted to be 1 2 billion, 1 33 billion, and 1 51 billion yuan, respectively, with corresponding P/E ratios of 17x, 16x, and 14x [5] Financial Performance Summary - In H1 2024, the company achieved revenue of 2 343 billion yuan, a YoY increase of 4 73%, while net profit attributable to shareholders decreased by 31 23% to 340 million yuan [2] - Gross margin in H1 2024 was 42 11%, up 0 95 percentage points YoY, with Q2 gross margin at 42 58%, down 1 25 percentage points YoY but up 1 10 percentage points QoQ [2] - Net margin in H1 2024 was 14 71%, down 7 80 percentage points YoY, with Q2 net margin at 13 92%, down 10 45 percentage points YoY and 1 85 percentage points QoQ [2] Business Highlights - PPR products, accounting for 45 8% of total revenue, saw a 3 2% YoY increase in revenue, with gross margin rising 2 0 percentage points to 59 1% [4] - The company's core region, East China, contributed 51 2% of revenue, with a 5 7% YoY increase, while overseas revenue grew 27 4% YoY, driven by successful expansion in Southeast Asia and the "Belt and Road" markets [4] - The company actively implemented a mid-term dividend, distributing 0 1 yuan per share, totaling 157 million yuan, with a dividend payout ratio of 46 26% [5] Marketing and Branding - Weixing New Materials increased its marketing efforts, with H1 2024 sales expenses rising 28 34% YoY, driven by accelerated market expansion during the low point [3] - The company announced Liu Shishi as the spokesperson for its water ecosystem products in April 2024 and launched a virtual brand ambassador, "Elephant Weisen," in July 2024 to enhance brand strength [3] Financial Forecast - Revenue for 2024-2026 is projected to be 6 378 billion, 6 506 billion, and 7 208 billion yuan, respectively, with growth rates of -8 3%, 2 0%, and 10 8% [6] - Net profit attributable to shareholders is expected to be 1 199 billion, 1 330 billion, and 1 513 billion yuan for 2024-2026, with growth rates of -16 3%, 10 9%, and 13 8% [6]