WEIXING NBM(SZ:002372)2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company, Weixing New Materials (伟星新材) [1]. Core Views - The company demonstrated resilience in performance despite a challenging market environment, with a focus on retail business expansion and channel optimization [1]. - In 2023, the company achieved a revenue of 63.78 billion yuan, a decrease of 8.27% year-on-year, while net profit attributable to shareholders increased by 10.40% to 14.32 billion yuan [1][2]. - The company aims for a revenue target of 73 billion yuan in 2024, with a focus on maintaining high dividend payouts and enhancing market share [1]. Financial Performance Summary - 2023 Financial Results: - Revenue: 63.78 billion yuan, down 8.27% year-on-year - Net Profit: 14.32 billion yuan, up 10.40% year-on-year - Gross Margin: 44.32%, an increase of 4.56 percentage points [1][2]. - Quarterly Performance: - Q4 2023 revenue was 12.75 billion yuan, a decline of 5.67% year-on-year, while net profit was 5.58 billion yuan, up 5.60% [1]. - Future Projections: - Expected net profit for 2024-2026: 14.52 billion yuan, 15.64 billion yuan, and 16.93 billion yuan respectively [2][4]. - Earnings per share (EPS) forecasted to be 0.90 yuan in 2024, increasing to 1.06 yuan by 2026 [2][4]. Market Position and Strategy - The company has increased its market share by over 3 percentage points in 2023, despite overall industry demand weakening [1]. - The main product lines, including PPR, PE, and PVC pipes, saw revenue declines due to market conditions, but gross margins improved due to lower raw material prices [1][2]. - The company is focusing on expanding its "Concentric Circle" business model and international opportunities to drive future growth [1]. Dividend Policy - The company plans to distribute a cash dividend of 0.8 yuan per 10 shares, resulting in a dividend payout ratio of 87.79% and a dividend yield of 4.86% [1].