伟星新材（002372）：稳健经营，现金流改善突出

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][5]. Core Insights - The company experienced a decline in revenue and profit due to industry demand weakness and intensified competition, but it has significantly improved its cash flow [4][5]. - The company focuses on high-quality development and cash flow management, achieving a net cash flow from operating activities of 581 million yuan, a year-on-year increase of 98.97% [4]. - Despite a slight decrease in profitability, the company maintains a stable profit level with an EBIT margin of 15.04% and a net profit margin of 13.08% [4]. Financial Performance Summary - In the first half of 2025, the company reported operating revenue of 2.078 billion yuan, a year-on-year decrease of 11.33%, and a net profit attributable to shareholders of 271 million yuan, down 20.25% [3]. - The company’s cash flow from operating activities accounted for 27.96% of its revenue, an increase of 15.51 percentage points year-on-year [4]. - The company’s gross profit margin was 40.50%, down 1.61 percentage points year-on-year, while the net profit margin decreased by 1.63 percentage points [4]. Future Profit Forecast - The company is expected to achieve net profits of 880 million yuan, 990 million yuan, and 1.09 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.55, 0.62, and 0.69 yuan [5][6]. - The current stock price corresponds to PE ratios of 19.94, 17.71, and 16.05 for the years 2025, 2026, and 2027, respectively [5][6]. Company Overview - The company is a leading brand in the domestic PP-R pipe industry, with products categorized into three main series: PPR pipes for building water supply, PE pipes for municipal water supply and heating, and PVC pipes for drainage and electrical protection [7]. - The company is focusing on brand channel consolidation, digital empowerment, overseas development, and the construction of concentric circle businesses to ensure stable growth [5]. Market Data - The company has a total market capitalization of 17.56 billion yuan and a circulating market value of 16.224 billion yuan [7]. - The stock has traded within a range of 15.39 to 10.54 yuan over the past 52 weeks [7].