WEIXING NBM(SZ:002372) CHINA DRAGON SECURITIES·2024-10-31 03:42Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has maintained revenue growth despite pressure on profitability, with a reported revenue of 3.773 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 0.71%. However, the net profit attributable to shareholders decreased by 13.80% to 624 million yuan [1][2] - The company is actively promoting its "Concentric Circle" and internationalization strategies to seek new avenues for performance growth, focusing on market expansion for waterproofing and water purification products [1][2] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 3.773 billion yuan, a year-on-year increase of 0.71%, while the net profit attributable to shareholders was 624 million yuan, down 13.80% [1] - In Q3 2024, the company reported a revenue of 1.284 billion yuan, a year-on-year decline, with a net profit of 284 million yuan, down 25.27% year-on-year but up 52.50% quarter-on-quarter [1] - The gross margin for Q3 2024 decreased by 4.9 percentage points compared to the previous year [1] Earnings Forecast - The revenue forecasts for 2024-2026 have been adjusted to 6.086 billion yuan, 6.604 billion yuan, and 7.334 billion yuan, respectively, down from previous estimates [1][2] - The net profit forecasts for the same period are now 1.072 billion yuan, 1.258 billion yuan, and 1.498 billion yuan, also revised down from earlier projections [1][2] Valuation Metrics - The current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 22.3, 19.0, and 16.0, respectively [2][3] - The company is compared to peers with an average P/E of 39.4 for 2024, indicating a relative valuation opportunity given its revenue resilience in a declining demand environment [1][3]