WEIXING NBM(SZ:002372) Guotou Securities·2024-11-03 10:23Investment Rating - The report maintains a "Buy-A" rating for the company with a 12-month target price of 17 CNY [5][7]. Core Views - The company demonstrates resilience in revenue generation despite facing profit pressure, with a year-on-year revenue increase of 0.71% to 3.773 billion CNY in the first three quarters of 2024 [1][2]. - The decline in net profit attributable to shareholders by 28.64% to 624 million CNY is attributed to decreased gross margins, increased expense ratios, and reduced investment income [2][3]. - The company is focusing on expanding its market share in the retail high-end pipe sector and is actively promoting other products such as waterproofing and water purification [4][7]. Revenue and Profitability - In Q3 2024, the company reported revenue of 1.430 billion CNY, a decrease of 5.24% year-on-year, with net profit attributable to shareholders at 284 million CNY, down 25.27% [1][2]. - The gross margin for Q3 improved slightly to 43.11% compared to the previous quarter, although it remains lower than the previous year [3]. - The operating cash flow for the first three quarters was 812 million CNY, reflecting a year-on-year increase of 1.12%, with Q3 showing a significant increase of 31.17% [3]. Financial Forecasts - The company is projected to achieve revenues of 6.804 billion CNY, 7.427 billion CNY, and 8.023 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 6.67%, 9.15%, and 8.02% [7][8]. - Net profit forecasts for the same period are 1.216 billion CNY, 1.356 billion CNY, and 1.491 billion CNY, with corresponding year-on-year changes of -15.08%, 11.50%, and 9.90% [7][8].