WEIXING NBM(SZ:002372) CMS·2025-08-13 12:03Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][6]. Core Views - The company experienced revenue and profit declines in the first half of 2025, with total revenue of 2.078 billion yuan, down 11.33% year-on-year, and a net profit of 271 million yuan, down 20.25% year-on-year. The company is focusing on improving cash flow and product pricing despite weak market demand [5][6]. - The company is expanding its sales layout and enhancing brand building, with a focus on retail business value reconstruction and the implementation of its "Same Circle" and "Weixing Whole House Water Ecology" strategies [6][5]. - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling 157 million yuan, reflecting a dividend payout ratio of 58.00% [6]. Financial Performance Summary - In H1 2025, the company achieved revenue of 2.078 billion yuan, with a breakdown of product revenues showing declines in PPR, PE, and PVC series products [5]. - The company's operating cash flow net amount was 581 million yuan, an increase of 99.10% year-on-year, indicating strong cash flow management [5]. - The sales gross margin and net margin were 40.50% and 13.08%, respectively, both showing slight declines compared to the previous year [5]. Strategic Developments - The company completed the acquisition of minority shareholders in Shanghai New Materials, increasing its stake to 90.00%, which strengthens its control over the waterproof business [5]. - The company has established over 50 sales companies nationwide, with more than 1,700 marketing and service personnel, covering over 30,000 marketing outlets [5]. Financial Projections - The company expects EPS of 0.52 yuan and 0.57 yuan for 2025 and 2026, respectively, with corresponding PE ratios of 21.3x and 19.4x [6][7].