BNBMPLC(SZ:000786) Great Wall Securities·2025-08-20 11:04Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% relative to the industry index over the next six months [7]. Core Views - The company is experiencing a phase of pressure in Q2 performance, but the paint business shows strong growth, with a significant increase in overseas sales [1][2]. - The company is implementing a "one body, two wings" strategy, which is expected to enhance its growth trajectory and expand its market presence [3][7]. - The projected net profit for the company from 2025 to 2027 is estimated to be 39 billion, 43 billion, and 49 billion CNY, representing year-on-year growth rates of 8%, 10%, and 14% respectively [7]. Financial Performance Summary - In the first half of 2025, the company reported a revenue of 13.558 billion CNY, a decrease of 0.29% year-on-year, and a net profit of 1.930 billion CNY, down 12.85% year-on-year [1]. - The company's gross margin and net margin for the first half of the year were 30.35% and 14.56%, showing a year-on-year decrease of 0.59 and 2.01 percentage points respectively [2]. - The company’s operating cash flow decreased by 52.86% year-on-year to 0.962 billion CNY, primarily due to the impact of last year's consolidation of Jia Baoli and a reduction in cash received from sales [2]. Strategic Developments - The company plans to invest in a new production line for gypsum boards and light steel keels in Ningbo, with a total investment of 631.8 million CNY, expected to enhance production capacity and reduce logistics costs [3]. - The overseas sales reached 324 million CNY in the first half of 2025, marking a year-on-year increase of 68.78%, driven by the company's international expansion efforts [1]. Market Position - The company is recognized as a leading player in the gypsum board industry, with substantial production capacity and a comprehensive strategy for global expansion [7]. - The report highlights the successful expansion into the waterproofing and paint sectors, which are anticipated to provide new growth opportunities [7].