WEIXING NBM(002372)2025-04-19 12:59Investment Rating - The investment rating for the company is "Maintain Buy" [6] Core Views - The company has demonstrated resilience in its retail pipeline business, achieving a market share increase despite a challenging external environment. The retail segment's revenue for PPR products was 2.939 billion, showing a slight decline of 1.72% year-on-year, while the overall revenue for the company decreased by 1.75% to 6.267 billion [2][5] - The company has maintained a high dividend payout, with a total dividend of 943 million for the year, achieving a payout ratio of 99%, marking a historical high in returns to shareholders [4] Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 6.267 billion, a year-on-year decline of 1.75%, and a net profit attributable to shareholders of 953 million, down 33.49% year-on-year. The adjusted net profit was 917 million, a decrease of 28.08% [1][5] - The fourth quarter alone saw revenue of 2.494 billion, a decline of 5.26%, with a net profit of 329 million, down 41.09% year-on-year [1] Business Segments - The retail business showed resilience, with PPR product revenue at 2.939 billion, only slightly down by 1.72%. However, the engineering segment faced challenges, with PE and PVC product revenues at 1.423 billion and 827 million, down 6.9% and 8.09% respectively [2] - The company achieved overseas revenue of 358 million, a growth of 26.65%, supported by operations in Thailand and Singapore [2] Profitability and Margins - The overall gross margin for 2024 was 41.72%, a decrease of 2.6 percentage points. The decline in margins was attributed to competitive pricing pressures, although core retail product prices remained stable [3] - The net profit margin for the year was 15.32%, down 7.59 percentage points year-on-year, while the adjusted net profit margin was 14.63%, down 5.36 percentage points [3] Cash Flow and Dividends - The company reported a net operating cash flow of 1.147 billion, with a cash conversion ratio of 1.2, indicating strong cash flow performance [4] - The total dividend for the year was 943 million, with a plan for a year-end dividend of 786 million, reflecting a commitment to high shareholder returns [4] Future Earnings Forecast - The company has adjusted its earnings forecast for 2025-2027, expecting net profits of 1.02 billion, 1.13 billion, and 1.25 billion respectively, with corresponding P/E ratios of 19, 17, and 16 [4][5]