WEIXING NBM(SZ:002372) Minsheng Securities·2024-04-08 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 15.58 yuan [7]. Core Views - The company achieved a revenue of 6.378 billion yuan in 2023, a year-on-year decrease of 8.27%, while the net profit attributable to shareholders was 1.432 billion yuan, an increase of 10.4% [2][6]. - The comprehensive gross margin improved by 4.56 percentage points to 44.32%, with a diluted ROE of 25.61%, up by 1.25 percentage points [2][6]. - The company aims for a revenue target of 7.3 billion yuan in 2024, representing a growth rate of 14.5% [4][6]. Financial Performance - The company's revenue in Q4 2023 was 2.632 billion yuan, down 5.67% year-on-year, with a net profit of 428 million yuan [2][4]. - The PPR product line accounted for 46.88% of total revenue, with a gross margin of 58.08%, up 6.33 percentage points [3][4]. - The company reported a net cash flow from operating activities of 1.374 billion yuan, down from 1.531 billion yuan in the previous year [6][9]. Market Position and Strategy - The company increased its retail market share by 3 percentage points during the year, focusing on high-quality operations rather than price wars [5][6]. - The company has a stable retail pricing system and benefits from raw material cost reductions, which has helped maintain its gross margin [3][5]. - The company is expanding its "Same Circle" strategy, which is expected to accelerate contributions from new businesses in waterproofing and water purification [6][9]. Future Projections - The projected net profit for 2024-2026 is estimated at 1.5 billion, 1.67 billion, and 1.84 billion yuan, respectively, with corresponding PE ratios of 17, 15, and 13 times [6][9]. - The company plans to continue investing in product technology upgrades and cost reduction through equipment updates [5][6].