BNBMPLC(SZ:000786) EBSCN·2024-10-27 05:12Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - Despite weak demand, the company achieved revenue growth in Q3 2024, with a year-on-year increase of 19.8% in revenue and 8.2% in net profit [1]. - The waterproofing business continues to improve, while the coatings business has seen significant growth due to the acquisition of a higher-margin company [1][2]. - The company is expected to implement a new round of price increases for gypsum boards, which may support profitability [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 20.36 billion yuan, a net profit of 3.15 billion yuan, and a non-recurring net profit of 3.07 billion yuan, representing year-on-year growth of 19.4%, 14.1%, and 12.7% respectively [1]. - In Q3 alone, revenue reached 6.77 billion yuan, with a net profit of 930 million yuan, showing year-on-year growth of 19.8% and 8.2% respectively [1]. - The operating cash flow for the first three quarters was 2.71 billion yuan, up 38.0% year-on-year [1]. Business Segments - The waterproofing segment generated 1.22 billion yuan in Q3, growing by 15.7% year-on-year, while the coatings segment saw a remarkable increase of 1088.4% to 1.05 billion yuan [1]. - The gross margin for the waterproofing segment was 17.2%, down 1.4 percentage points year-on-year, while the coatings segment's gross margin improved by 5.0 percentage points to 31.7% [1]. Profitability and Costs - The overall gross margin for the first three quarters was 30.7%, slightly down by 0.1 percentage points year-on-year, with a net profit margin of 15.7%, down 0.6 percentage points [1]. - In Q3, the gross margin was 30.1%, down 1.9 percentage points year-on-year, attributed to weak demand [1]. Future Outlook - The company has slightly adjusted its net profit forecasts for 2024-2026 to 4.014 billion, 4.615 billion, and 5.347 billion yuan, reflecting a decrease of 11%, 9%, and 5% respectively from previous estimates [2]. - The company is expected to maintain steady growth in its core gypsum board business and benefit from the integration of the coatings business [2].