BNBMPLC(SZ:000786) Tianfeng Securities·2024-10-27 13:45Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.55 CNY, reflecting a 15x PE for 2024 [3][5]. Core Insights - The company achieved a net profit attributable to shareholders of 9.3 billion CNY in Q3, representing an 8.23% year-on-year increase. For the first three quarters, the revenue reached 203.6 billion CNY, up 19.44% year-on-year, with a net profit of 31.5 billion CNY, a 14.12% increase [1][3]. - The company's revenue in Q3 was 67.7 billion CNY, showing a 19.82% year-on-year growth, although it experienced a slight quarter-on-quarter decline of 11.58% [1][2]. - The company is focusing on urban renewal and various sectors such as industrial and civil construction, which are expected to support its growth despite a downturn in the new housing market [1][3]. Financial Performance Summary - The gross margin for Q3 was 30.1%, down 1.9 percentage points year-on-year and 2.6 percentage points quarter-on-quarter. The expense ratio increased to 14.6%, reflecting a rise in sales, management, and R&D expenses [2][3]. - The company forecasts net profits of 43.5 billion CNY, 49.3 billion CNY, and 56.5 billion CNY for 2024, 2025, and 2026 respectively, indicating a positive growth outlook [3][4]. - The company’s revenue is projected to grow from 22.43 billion CNY in 2023 to 27.04 billion CNY in 2024, with an expected growth rate of 20.56% [4][11]. Market Position and Strategy - The company is leveraging its strong market share in the gypsum board sector, which is expected to maintain stable profitability due to its pricing power [1][3]. - The "One Body, Two Wings" strategy is anticipated to enhance the company's long-term growth potential, with the two wings business gradually becoming a significant growth driver [3][4].