XINXING PIPES(000778) Minsheng Securities·2025-04-13 10:23Investment Rating - The report adjusts the investment rating to "Cautious Recommendation" [5] Core Views - The company reported a revenue of 36.194 billion yuan in 2024, a year-on-year decrease of 16.32%, and a net profit attributable to shareholders of 167 million yuan, down 87.60% year-on-year [1] - The company is a leader in the ductile iron pipe industry and is actively expanding into overseas markets, with a significant project in Egypt [2][3] - The demand for ductile iron pipes is expected to grow due to urban pipeline renovation projects, with an estimated total investment of around 4 trillion yuan over the next five years [3] Summary by Sections Financial Performance - In 2024, the company sold 8.2164 million tons of cast iron and steel, a decrease of 4.2% year-on-year, with specific product sales showing varied performance [2] - The gross profit margin for 2024 was 5.40%, a decrease of 0.89 percentage points year-on-year [2] - The fourth quarter of 2024 saw a revenue of 9.114 billion yuan, a quarter-on-quarter increase of 9.16% and a year-on-year increase of 31.48% [1] Market Position and Strategy - The company has a production capacity of 3.2 million tons for cast iron and pipe castings, maintaining a leading position globally [2] - The company has increased its focus on key markets, with a 29% increase in export sales and over 300,000 tons of new cast iron contracts signed in 2024 [3] Future Outlook - The company expects to achieve net profits of 396 million yuan, 584 million yuan, and 784 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 33, 22, and 17 [4] - The anticipated growth in urban pipeline construction is expected to provide new opportunities for the domestic cast iron market [3]