West Construction(002302) 西南证券·2025-04-22 11:12Investment Rating - The report does not specify a clear investment rating for the company [1] Core Views - The company continues to face pressure on its profitability, with a significant decline in revenue and net profit in the first quarter of 2025. Revenue decreased by 7.6% year-on-year to 3.74 billion yuan, while the net profit attributable to the parent company was -250 million yuan, a 122% decline year-on-year [7] - Downstream demand remains weak, with new housing starts down 24.4% year-on-year and construction area down 9.5% year-on-year. The overall industry is still in a bottoming phase [7] - The concrete market price is at a low point, with an average price of 353.43 yuan per cubic meter, showing a slight decrease of 0.08% from the previous quarter [7] - The company's gross margin has decreased by 4.1 percentage points to 0.9% due to lower sales prices of concrete. The net profit margin has also declined by 4.5 percentage points to -7.2% [7] - The company has a strong competitive advantage in the concrete industry, being the only development platform for ready-mixed concrete under China State Construction Engineering Corporation. It has been focusing on its core business and expanding its market presence [7] - The company is expected to benefit from favorable policies in the real estate sector and infrastructure investment projects, which may lead to a gradual recovery in downstream demand [7] Financial Summary - The company's projected revenue for 2025 is 21.08 billion yuan, with a growth rate of 3.58%. The net profit attributable to the parent company is expected to be 160 million yuan, a significant recovery from a loss of 263 million yuan in 2024 [2][8] - The earnings per share (EPS) is projected to improve from -0.21 yuan in 2024 to 0.13 yuan in 2025 [2] - The return on equity (ROE) is expected to turn positive, increasing from -2.06% in 2024 to 1.91% in 2025 [2]