WEIXING NBM(SZ:002372) KAIYUAN SECURITIES·2024-10-30 12:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2]. Core Views - The company has shown stable revenue growth, with a reported revenue of 3.773 billion yuan for the first three quarters of 2024, reflecting a year-on-year increase of 0.71%. However, the net profit attributable to shareholders decreased by 28.64% to 624 million yuan [1][2]. - The company is actively expanding its retail channels and new product categories, which is expected to support its ongoing development despite the current industry downturn [1][3]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 1.430 billion yuan, a quarter-on-quarter increase of 6.17%, and a net profit of 284 million yuan, up 52.50% from the previous quarter [1][2]. - The gross margin for the first three quarters of 2024 was 42.5%, with a slight year-on-year decrease of 1.4 percentage points. The total expense ratio increased by 2.7 percentage points to 22.5% [2]. - The company has maintained a high cash collection ratio of 110.7% and a low debt level, with a debt-to-asset ratio of 24.04% [2]. Future Earnings Forecast - The earnings forecast for 2024-2026 has been adjusted, with expected net profits of 1.0 billion, 1.33 billion, and 1.51 billion yuan respectively, reflecting a year-on-year decrease of 30.2% in 2024, followed by increases of 32.8% and 13.9% in the subsequent years [1][2]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.63, 0.83, and 0.95 yuan respectively [1][2]. Business Development Strategy - The company is focusing on enhancing its market share through improved channel construction and expanding its product categories, particularly in indoor waterproofing and whole-house water purification [3]. - The company has over 1,000 primary distributors and more than 31,000 terminal marketing outlets, indicating a stable distribution network [3].