BNBMPLC(SZ:000786) EBSCN·2024-04-29 11:32Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company reported Q1 2024 results that exceeded market expectations, with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 5.94 billion, 820 million, and 790 million yuan respectively, representing year-on-year growth of 24.6%, 38.1%, and 40.7% [2]. - The gross margin improved to 28.6%, up 1.7 percentage points year-on-year, driven by increased sales of gypsum board, product price increases, and a decline in raw material costs [3]. - The integration of the company’s new subsidiary, Jiaboli, is expected to enhance the coatings segment, with a commitment from the original shareholders to ensure minimum net profits of 413 million, 875 million, and 1.394 billion yuan for the years 2024, 2024-2025, and 2024-2026 respectively [4]. - The company is investing 140 million yuan in a new waterproof material production line, which is anticipated to strengthen its market presence in several provinces [4]. Summary by Sections Financial Performance - Q1 2024 revenue was 5.94 billion yuan, with a net profit of 820 million yuan, and a net profit excluding non-recurring items of 790 million yuan, showing significant year-on-year increases [2]. - The operating cash flow improved significantly, with a net cash flow from operating activities of -26 million yuan, an increase of 277 million yuan year-on-year [3]. Profitability Metrics - The company’s gross margin for Q1 2024 was 28.6%, reflecting a year-on-year increase of 1.7 percentage points [3]. - The net profit margin reached 14.0%, up 1.5 percentage points year-on-year [3]. Growth Projections - The company forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 4.493 billion, 5.046 billion, and 5.626 billion yuan respectively, indicating a compound annual growth rate (CAGR) of 12.1% for the years 2024-2026 [4]. - Revenue is projected to grow from 25.33 billion yuan in 2024 to 33.59 billion yuan in 2026, with growth rates of 12.95%, 13.97%, and 16.37% for the respective years [5]. Valuation Metrics - The report provides a price-to-earnings (P/E) ratio forecast of 11 for 2024, decreasing to 9 by 2026, indicating an attractive valuation [5]. - The price-to-book (P/B) ratio is expected to decline from 1.9 in 2024 to 1.5 in 2026 [5].