WEIXING(SZ:002003) KAIYUAN SECURITIES·2025-04-01 07:19Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to achieve a strong performance in 2024, with revenue projected at 4.67 billion yuan, a year-on-year increase of 19.7%, and a net profit of 700 million yuan, up 25.5% [4][5] - The company is positioned as a leading domestic supplier, with production capacities for buttons and zippers expected to enhance international competitiveness as production ramps up in Vietnam [4][5] - The company aims to continue expanding its product categories and enhancing its marketing and service systems while pushing forward with its internationalization strategy [4][5] Financial Summary - Revenue for 2023 was 3.907 billion yuan, with a projected increase to 4.674 billion yuan in 2024, and further growth expected to 5.018 billion yuan in 2025 [6][8] - The net profit for 2023 was 558 million yuan, with projections of 700 million yuan in 2024 and 753 million yuan in 2025 [6][8] - The gross margin is expected to improve from 41.7% in 2024 to 41.9% in 2025, driven by an increase in the gross margin of buttons [5][6] - The company maintains a high dividend payout ratio, with a cash dividend ratio of 83.5% in 2024 [5] Production and Sales Insights - The company’s button business is expected to generate revenue of 1.64 billion yuan in 2024, reflecting a year-on-year increase of 41.9% [4][5] - The zipper business is projected to achieve revenue of 2.48 billion yuan in 2024, with a gross margin of 42.1% [4][5] - International business is expected to grow significantly, with revenue from international markets projected to increase by 30.6% year-on-year [4][5] Valuation Metrics - The projected P/E ratios for the company are 18.6 for 2025, 16.1 for 2026, and 14.0 for 2027 [4][6] - The company’s return on equity (ROE) is expected to rise from 16.1% in 2024 to 18.6% in 2027 [6][8]