WEIXING NBM(SZ:002372)2024-10-31 00:48Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [5]. Core Views - The company has shown resilience under market pressure, with a significant improvement in net profit margin quarter-on-quarter [5]. - Despite a decline in market demand, the company has maintained strong profitability due to its brand, service, and channel advantages [5]. - The company is expected to continue expanding its competitiveness in the retail sector through its mid-to-high-end brand positioning and service advantages [5]. Financial Summary - For the first three quarters of 2024, the company achieved a revenue of 3.77 billion yuan, a year-on-year increase of 0.7%, and a net profit of 624 million yuan, a year-on-year decrease of 28.6% [5][6]. - The gross margin for the first three quarters was 42.49%, and the net margin was 16.80%, reflecting a decrease of 1.44 percentage points and 7.02 percentage points year-on-year, respectively [5]. - The company expects revenues of 6.57 billion yuan, 7.13 billion yuan, and 7.95 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 1.27 billion yuan, 1.42 billion yuan, and 1.65 billion yuan [5][6]. Market Context - The real estate sector has faced challenges, with a 24.4% year-on-year decline in completed construction area in the first three quarters of 2024 [5]. - The company’s retail business is impacted by new housing completions, but there is potential for growth from renovation and second-hand housing transactions as the housing stock ages [5]. Future Outlook - The company is expected to see revenue growth of 3.0%, 8.5%, and 11.6% in 2024, 2025, and 2026, respectively [6]. - The report highlights the company's strategic shift from "product + service" to "system integration + service," which is anticipated to enhance customer value and mitigate market demand pressures [5].