BNBMPLC(SZ:000786) Guotou Securities·2024-03-19 16:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 35.56 CNY, corresponding to a PE ratio of 14 times for 2024 [4][9]. Core Views - The company reported a steady revenue growth of 11.27% year-on-year, achieving a total revenue of 22.426 billion CNY in 2023, alongside a net profit of 3.524 billion CNY, reflecting a year-on-year increase of 12.07% [2][3]. - The gypsum board business remains stable, while the auxiliary businesses, including waterproof membranes and coatings, are experiencing rapid growth, with revenue increases of 28.99% and 22.38% respectively [2][3]. - The company has shown strong operational cash flow, with a net operating cash flow of 4.734 billion CNY, marking a significant year-on-year increase of 28.76% [3]. Summary by Sections Revenue and Profitability - In 2023, the company achieved a revenue of 22.426 billion CNY, with the gypsum board segment contributing 13.766 billion CNY, a growth of 3% year-on-year. The sales volume reached 2.172 billion square meters, with an average price of 6.34 CNY per square meter [2]. - The waterproof membrane segment generated 2.786 billion CNY, up 28.99%, while the coatings segment brought in 968 million CNY, up 22.38% [2]. - The company’s gross margin improved to 29.88%, with the gypsum board segment's gross margin at 38.49%, reflecting a year-on-year increase of 3.54 percentage points [3]. Cash Flow and Expenses - The operating cash flow for 2023 was 4.734 billion CNY, an increase of 10.7 billion CNY from the previous year, indicating a robust cash collection strategy [3]. - The company effectively controlled its expense ratio, which decreased to 12.49%, contributing to a slight increase in the net profit margin to 15.85% [3]. Future Outlook - The company forecasts revenue growth of 13.13%, 12.76%, and 11.72% for 2024, 2025, and 2026 respectively, with net profits expected to grow by 21.59%, 13.45%, and 11.47% during the same period [8]. - The company is actively expanding its market presence in the home decoration sector and enhancing its product offerings, particularly in the waterproof and coating segments [8].