WEIXING NBM(SZ:002372) Dongxing Securities·2025-10-28 10:33Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][6]. Core Insights - The company's revenue and profit decline has narrowed, indicating operational improvements [4][5]. - The company has a strong cash position, which supports its ability to withstand market challenges and enhances its dividend capacity [5][6]. - The company is recognized as a leading player in the consumer piping industry, with a focus on high-quality development and effective cash collection [5][6]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 3.367 billion yuan, a year-on-year decline of 10.76%. The net profit attributable to the parent company was 540 million yuan, down 13.52% year-on-year, with a non-recurring net profit of 490 million yuan, a decline of 19.94% [3][4]. - The EBITDA margin for the first three quarters of 2025 was 18.65%, showing a slight decrease of 0.07 percentage points year-on-year. The gross profit margin was 41.47%, down 1.02 percentage points year-on-year, while the net profit margin was 16.02%, a slight decrease of 0.78 percentage points year-on-year [4][5]. - The company's asset-liability ratio at the end of Q3 2025 was 23.42%, a decrease of 0.62 percentage points year-on-year, indicating improved financial stability [4][5]. Profit Forecast - The company is expected to achieve net profits of 850 million yuan, 965 million yuan, and 1.086 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.53 yuan, 0.61 yuan, and 0.68 yuan [6][10]. - The current stock price corresponds to PE ratios of 19.31, 17.01, and 15.12 for the years 2025, 2026, and 2027, respectively [6][10]. Operational Efficiency - The company's inventory turnover days improved to 117.66 days, a decrease of 7.89 days year-on-year, reflecting enhanced inventory management efficiency [5][6]. - The operating cycle for the first three quarters of 2025 was 158.87 days, down 7.28 days year-on-year, indicating better operational management [5][6]. Market Position - The company is a pioneer and leading brand in the domestic PP-R pipeline sector, with products spanning three main series: PPR, PE, and PVC pipes and fittings [6][10]. - The company has established a nationwide sales network that directly connects with customers, enhancing its market presence [5][6].