BNBMPLC(SZ:000786) Minsheng Securities·2024-10-25 13:00Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company reported a revenue of 20.364 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 19.44%. The net profit attributable to shareholders was 3.145 billion yuan, up 14.12% year-on-year [2]. - The third quarter of 2024 saw a revenue of 6.767 billion yuan, a year-on-year increase of 19.82%, with a net profit of 931 million yuan, reflecting an 8.23% increase year-on-year [2]. - The gross margin for Q3 2024 was 30.07%, down 1.93 percentage points year-on-year and 2.66 percentage points quarter-on-quarter, attributed to macroeconomic conditions and increased market competition [2]. - The company’s strategic focus on expanding its product categories has helped mitigate cyclical downturns, with significant growth in the waterproof and coating segments [2]. Revenue Performance - The revenue breakdown for the first three quarters shows that waterproof and coating products accounted for 17.6% and 12.5% of total revenue, respectively, while lightweight building materials represented approximately 70% [2]. - The waterproof segment generated 3.578 billion yuan in revenue, up 18.67% year-on-year, while the coating segment saw a remarkable increase of 735.04%, totaling 2.548 billion yuan [2]. Profitability and Costs - The company’s operating expenses increased due to the acquisition of a subsidiary, with total expenses for Q1-Q3 2024 at 13.41% of revenue, up 0.62 percentage points year-on-year [2]. - The net profit margin for Q3 2024 was 13.95%, down 1.44 percentage points year-on-year, influenced by declining gross margins and rising sales expenses [2]. Cash Flow and Financial Health - The company maintained a healthy cash flow status, with a net operating cash flow of 2.706 billion yuan for Q3 2024, an increase of 38.01% year-on-year [2]. - As of the end of Q3 2024, the company’s asset-liability ratio was 27.96%, indicating a low level of debt [2]. Future Outlook - The report projects net profits for 2024, 2025, and 2026 to be 4.38 billion yuan, 4.67 billion yuan, and 5.12 billion yuan, respectively, with corresponding price-to-earnings ratios of 12, 11, and 10 times [2][3].