West Construction(002302) 西南证券·2025-04-22 14:23Investment 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 net profit attributable to the parent company was -250 million yuan, a decline of 122% 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, compounded by unfavorable weather conditions and the impact of the Spring Festival [7]. - The concrete market price remains at a low level, with an average price of 353.43 yuan per cubic meter as of March 31, 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%, primarily 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 actively optimizing its regional layout and has added 54 new concrete mixing stations, significantly enhancing its market coverage and service capabilities [7]. - With favorable policies in the real estate sector and infrastructure investment projects being launched, downstream demand is expected to gradually recover, benefiting the company as a leading player in the industry [7]. Financial Summary - The company's projected revenue for 2025 is 210.76 billion yuan, reflecting a growth rate of 3.58% compared to 2024. The net profit attributable to the parent company is expected to be 1.60 billion yuan, a significant recovery from a loss in 2024 [2]. - The earnings per share (EPS) is projected to be 0.13 yuan in 2025, with a return on equity (ROE) of 1.91% [2]. - The company’s total assets are estimated at 332.68 billion yuan in 2025, with a total market capitalization of 74.48 billion yuan [5][2].