WEIXING NBM(SZ:002372) Tianfeng Securities·2025-04-29 09:12Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7][19]. Core Views - The company experienced a slight decline in revenue and profit in Q1 2025, with revenue at 895 million, down 10.2% year-on-year, and net profit attributable to the parent company at 114 million, down 25.95% year-on-year. The decline is attributed to revenue drop, pressure on gross margin, and an increase in expense ratio [1]. - Despite the Q1 performance challenges, the report expresses optimism about the company's long-term development potential, focusing on enhancing market share in the retail sector and exploring new business models [4]. Financial Performance Summary - In Q1 2025, the company's comprehensive gross margin was 40.5%, a decrease of 1.03 percentage points year-on-year and 0.11 percentage points quarter-on-quarter. The prices of key raw materials such as PVC, HDPE, and PPR have also declined, which may intensify industry price competition [2]. - The company's expense ratio increased by 1.57 percentage points to 25.5%, with sales, management, R&D, and financial expense ratios reported at 14.92%, 7.35%, 3.46%, and -0.28%, respectively. The net profit margin for Q1 2025 was 12.7%, down 2.7 percentage points year-on-year [3]. - The company reported a net cash inflow from operating activities of 85 million in Q1 2025, an increase of 260 million year-on-year, indicating strong cash flow performance [3]. Future Projections - The company aims to enhance its retail business foundation and increase market share while controlling risks in its engineering business. The projected net profits for 2025-2027 are 1.02 billion, 1.11 billion, and 1.22 billion, respectively, with corresponding P/E ratios of 18.2, 16.8, and 15.3 [4][6].