BNBMPLC(SZ:000786) Guotou Securities·2024-04-29 00:00Investment Rating - The investment rating for the company is "Buy - A" with a maintained rating [3][7]. Core Views - The company reported strong revenue and profit growth in Q1 2024, with revenue reaching 5.944 billion yuan (up 24.62% year-on-year) and net profit attributable to shareholders at 822 million yuan (up 38.11% year-on-year) [1][7]. - The company's "one body, two wings" strategy is progressing well, with increased sales of gypsum board products and contributions from the acquired company, Jiaboli [1][7]. - The gross profit margin improved significantly due to a decrease in raw material prices, leading to a net profit margin of 13.95%, an increase of 1.44 percentage points year-on-year [1][7]. - The company is expanding its waterproof business with new production lines, enhancing its competitive edge and economic efficiency [2][7]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 5.944 billion yuan, a year-on-year increase of 24.62%, and a net profit of 822 million yuan, up 38.11% year-on-year [1][7]. - The gross profit margin for the period was 28.65%, reflecting a year-on-year increase of 1.74 percentage points, attributed to lower prices of key raw materials [1][7]. - The operating cash flow showed a net outflow of 26 million yuan, which is a reduction of 277 million yuan compared to the previous year, mainly due to improved cash flow from the newly acquired Jiaboli [1][7]. Business Strategy - The company is actively expanding its production capacity for gypsum board and waterproof materials, with new production lines being established in Anhui Province [2][7]. - The "two wings" strategy focuses on enhancing the waterproof and coating businesses, with the acquisition of Jiaboli strengthening its market position in the coatings sector [7]. - The company aims to enhance its competitiveness by diversifying its product offerings and expanding into new markets, particularly in home decoration and industrial applications [7]. Future Outlook - Revenue projections for 2024-2026 are estimated at 25.371 billion yuan, 28.609 billion yuan, and 31.961 billion yuan, respectively, with expected year-on-year growth rates of 13.13%, 12.76%, and 11.72% [7][8]. - Net profit forecasts for the same period are 4.285 billion yuan, 4.861 billion yuan, and 5.419 billion yuan, with growth rates of 21.59%, 13.45%, and 11.47% [7][8]. - The company is expected to maintain a dynamic PE ratio of 11.9 times, 10.5 times, and 9.4 times for the years 2024, 2025, and 2026, respectively [7][8].