WEIXING NBM(SZ:002372) Tianfeng Securities·2025-04-16 08:14Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company is expected to achieve a revenue of 6.267 billion in 2024, a decrease of 1.75% year-on-year, with a net profit attributable to the parent company of 952.67 million, reflecting a significant decline of 33.49% [1]. - The company plans to distribute a cash dividend of 786 million for 2024, resulting in a high dividend payout ratio of 99%, which enhances shareholder returns [1]. - Despite challenges such as increased market competition and weak industry demand, the company is projected to see a gradual recovery in net profit from 1.024 billion in 2025 to 1.215 billion in 2027 [1]. Revenue and Profitability - The retail market share is steadily increasing, with revenues from PPR, PE, and PVC products in 2024 at 2.939 billion, 1.423 billion, and 0.827 billion respectively, showing declines of 1.72%, 6.9%, and 8.09% year-on-year [2]. - The overall gross margin for the company in 2024 is expected to be 41.7%, down 2.59 percentage points from the previous year, with a quarterly gross margin of 40.56% in Q4 [4]. Business Growth and Expansion - The company’s waterproof and other products achieved a revenue of 1.033 billion in 2024, marking a year-on-year growth of 12.94%, indicating successful penetration in the market [3]. - The overseas business generated revenue of 358 million, reflecting a growth of 26.65%, with ongoing international expansion efforts in Singapore and Thailand [3]. Financial Data and Forecast - The company’s financial projections indicate a gradual increase in revenue from 6.632 billion in 2025 to 7.669 billion in 2027, with corresponding net profits expected to rise from 1.025 billion to 1.216 billion [5][12]. - The projected price-to-earnings (P/E) ratios for the next three years are 18.21, 16.83, and 15.35, suggesting a favorable valuation trend [5]. Cost and Expense Management - The company’s selling expenses increased by 14.04% year-on-year, primarily due to enhanced marketing efforts, contributing to an overall increase in the period expense ratio to 22.16% [4]. - Asset and credit impairment losses rose significantly, impacting profitability, with net profit margins declining to 15.32% in 2024 [4].