NWM(603700) Yong Xing Zheng Quan·2025-04-14 10:56Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance relative to the market benchmark [3]. Core Insights - The company reported a 2024 revenue of 1.501 billion yuan, a year-over-year decrease of 16.13%, and a net profit attributable to shareholders of 52 million yuan, down 60.07% year-over-year, which aligns with prior forecasts [1][5]. - The company is facing challenges from industry demand contraction, intensified market competition, and supply chain pressures, but it is actively implementing a differentiated competitive strategy to navigate these challenges [1][2]. - The company is transitioning towards a digital service-oriented model in the water sector, focusing on building a smart water ecosystem that integrates intelligent sensing, data-driven approaches, and engineering services [2]. - A cash dividend of 2 yuan per 10 shares is proposed, amounting to approximately 39.98 million yuan, which represents 76.27% of the company's net profit for 2024 [2]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 1.709 billion yuan, 1.979 billion yuan, and 2.329 billion yuan, reflecting year-over-year growth rates of 13.9%, 15.8%, and 17.7% respectively [3][5]. - Net profit projections for the same years are 62 million yuan, 73 million yuan, and 88 million yuan, with expected growth rates of 18.3%, 17.7%, and 20.5% [3][5]. - The report outlines a gradual improvement in earnings per share, forecasting 0.31 yuan in 2025, 0.36 yuan in 2026, and 0.43 yuan in 2027 [5][12]. Valuation Metrics - The company’s price-to-earnings ratio is projected to decrease from 38.50 in 2024 to 24.62 by 2027, indicating an improving valuation as earnings grow [5][12]. - The return on equity is expected to rise from 3.3% in 2024 to 5.3% in 2027, reflecting enhanced profitability [5][12].