WEIXING NBM(SZ:002372) Guoxin Securities·2025-08-21 11:41Investment Rating - The investment rating for the company is "Outperform the Market" [5][22]. Core Views - The company is facing pressure on revenue and profit due to insufficient demand and intensified competition, with H1 2025 revenue at 2.08 billion yuan, down 11.3% year-on-year, and net profit at 270 million yuan, down 20.2% year-on-year [1][7]. - The company is focusing on core products and strengthening collaboration while continuing to advance its international strategy, with revenue from PPR, PE, PVC, and other products showing varying degrees of decline [2][11]. - The gross margin for Q2 has improved sequentially, and operating cash flow has significantly increased year-on-year, indicating a positive trend in cash management [3][17]. Financial Performance Summary - For H1 2025, the company achieved a gross margin of 40.5%, with a slight year-on-year decrease of 1.6 percentage points, while Q2 gross margin was 40.53%, showing a sequential increase [3][17]. - The company plans to distribute a mid-term dividend of 1 yuan per 10 shares, reflecting a commitment to shareholder returns with a dividend payout ratio of 58% [22]. - The earnings per share (EPS) forecast for 2025-2027 has been adjusted to 0.52, 0.58, and 0.62 yuan per share, respectively, with corresponding price-to-earnings (PE) ratios of 21.0, 19.0, and 17.6 times [22][4].