WEIXING NBM(SZ:002372) Dongxing Securities·2025-04-30 06:55Investment Rating - The report maintains a "Strong Buy" investment rating for the company, indicating a strong performance relative to market benchmarks [2][6]. Core Insights - The company achieved a revenue of 6.267 billion yuan in 2024, a decrease of 1.75% year-on-year, with a net profit attributable to shareholders of 953 million yuan, down 33.49% year-on-year [3][4]. - Despite a decline in revenue, the company managed to increase its market share, with a sales volume of 300,400 tons for pipes, reflecting a growth of 2.30% year-on-year [4]. - The company has maintained a high dividend payout ratio of 99% in 2024, continuing an upward trend since 2023, supported by strong cash flow and low debt levels [5][6]. Financial Performance Summary - In 2024, the company's operating costs increased by 2.82% year-on-year, leading to a gross margin of 41.72%, which is a decrease of 2.60 percentage points compared to the previous year [4]. - The company’s net profit is projected to recover in the coming years, with estimates of 1.042 billion yuan, 1.126 billion yuan, and 1.237 billion yuan for 2025, 2026, and 2027 respectively, corresponding to EPS of 0.65, 0.71, and 0.78 yuan [6][11]. - The company’s asset-liability ratio was 21.07% in 2024, indicating a strong financial position with ample liquidity [5]. Market Position and Competitive Advantages - The company ranks 6th in brand strength and value within the construction materials industry, maintaining its position as one of the top ten brands in plastic pipes in China [6]. - The company has a well-established marketing network with over 50 sales companies and more than 30,000 marketing outlets, which supports its competitive edge [6]. - The company has contributed to over 260 national and industry standards and holds more than 1,700 patents, showcasing its commitment to innovation and industry leadership [6].