NWM(SH:603700) Yong Xing Zheng Quan·2025-03-04 05:40Investment Rating - The report maintains a "Buy" rating for Ning Shui Group, indicating a positive outlook on the company's performance relative to the market benchmark [4]. Core Views - The successful election of the new board and supervisory committee on February 17 and 18, 2025, reflects the company's stable governance structure and commitment to strategic direction [2]. - The company is actively promoting the integration of artificial intelligence in smart water management, collaborating with major AI models to enhance service delivery [2]. - Local government leaders have praised the company's focus on its core business and its achievements in digital transformation, highlighting its competitive position in the water meter industry [3]. Financial Performance Summary - Revenue projections for 2024-2026 are adjusted to approximately 1.346 billion, 1.706 billion, and 1.976 billion yuan, respectively, with net profit estimates of 48 million, 53 million, and 58 million yuan [4]. - The company reported a revenue of 1.789 billion yuan in 2023, with a year-on-year growth rate of 15.1%. However, a significant decline of 24.8% is expected in 2024 [6]. - The earnings per share (EPS) is projected to be 0.24 yuan in 2024, recovering to 0.26 yuan in 2025 and 0.29 yuan in 2026 [6]. Market Position and Strategy - Ning Shui Group is recognized as a leader in the water meter industry, with high concentration, competitive products, and significant sales volume [3]. - The company is leveraging new information technologies to extract data value and enhance operational efficiency in water management [2].