WEIXING NBM(SZ:002372) Minsheng Securities·2024-10-31 06:53Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 15.26 CNY [5]. Core Views - The company achieved a revenue of 3.773 billion CNY in the first three quarters of 2024, a year-on-year increase of 0.71%, while the net profit attributable to the parent company was 624 million CNY, a decrease of 28.64% year-on-year [1]. - The company continues to invest in marketing, leading to an increase in expense ratios, with total expense ratio for Q1-Q3 2024 at 22.50%, up 2.68 percentage points year-on-year [2]. - The company maintains stable cash flow and high-quality operations, with a net cash flow from operating activities of 521 million CNY in Q3 2024, showing year-on-year and quarter-on-quarter increases [3]. - The company is expected to maintain high-quality development in a challenging market, focusing on retail and marketing investments, with projected net profits for 2024-2026 at 1.05 billion, 1.16 billion, and 1.29 billion CNY respectively [3]. Financial Performance Summary - For Q1-Q3 2024, the company reported a gross margin of 42.49%, down 1.43 percentage points year-on-year, and a net profit margin of 16.80%, down 7.02 percentage points year-on-year [1]. - The company’s revenue for Q3 2024 was 1.430 billion CNY, a decrease of 5.24% year-on-year, with a net profit of 284 million CNY, down 25.27% year-on-year [1]. - The company’s total revenue projections for 2024-2026 are 6.187 billion, 6.496 billion, and 7.146 billion CNY, with corresponding growth rates of -3.0%, 5.0%, and 10.0% [4][6].