WEIXING NBM(SZ:002372) Hua Yuan Zheng Quan·2024-11-01 02:32Investment Rating - The investment rating for the company is "Accumulate" (maintained) [3] Core Views - The company reported a slight improvement in quarterly performance, with a year-on-year revenue decline of 5.24% in Q3 2024, but a sequential increase compared to Q2 2024. The net profit attributable to shareholders decreased by 25.27% year-on-year, indicating ongoing pressure on profitability despite some recovery in the renovation market [1][3] - The report highlights that the company's gross margin for Q3 2024 was 43.11%, down 4.89 percentage points year-on-year but up 0.54 percentage points sequentially, suggesting a potential recovery in the renovation market [1] - The report anticipates that the company's performance may reach a bottom, with a focus on the pace of recovery in the future [3] Financial Performance Summary - For Q3 2024, the company achieved revenue of 1.43 billion yuan, a year-on-year decrease of 5.24%, and a net profit of 284 million yuan, down 25.27% year-on-year [1][3] - The company's total revenue for the first three quarters of 2024 was 3.77 billion yuan, with a year-on-year growth of 0.71%, while the net profit for the same period was 624 million yuan, reflecting a decline of 28.64% [3] - The report projects net profits for 2024-2026 to be 1.48 billion, 1.71 billion, and 1.94 billion yuan respectively, with corresponding EPS of 0.93, 1.08, and 1.22 yuan [4] Market Outlook - The report suggests that the real estate market is stabilizing, which may lead to a two-phase recovery in the sector. The first phase involves a passive bottoming out due to inflation transmission, while the second phase is driven by a supply-demand gap created by reduced new construction and land acquisition [3] - The report employs a DCF valuation method, estimating the company's implied perpetual growth rate at approximately 4.75%, indicating that the company still holds investment value [3]