WEIXING NBM(002372) 光大证券·2025-04-23 09:45Investment Rating - The report maintains a "Buy" rating for the company [5][9]. Core Views - The company reported a total revenue of 6.3 billion yuan and a net profit attributable to shareholders of 0.95 billion yuan for 2024, reflecting a year-on-year decline of 2% and 33% respectively. The company plans to distribute a cash dividend of 7.86 billion yuan, resulting in a dividend payout ratio of 99%, which is an increase of 11 percentage points year-on-year [5][9]. - The company aims for a revenue target of 6.58 billion yuan for 2025, representing a 5% year-on-year growth [5][9]. Summary by Sections Business Performance - The company experienced a smaller decline in revenue across its three main business segments, with revenues for PPR pipes, PE pipes, PVC pipes, and other products reported at 2.94 billion, 1.42 billion, 0.83 billion, and 1.03 billion yuan respectively, showing year-on-year changes of -2%, -7%, -8%, and +13% [6]. - The overall decline in revenue is attributed to weak downstream demand, with retail business, primarily focused on PPR products, being less affected compared to engineering business [6]. Profitability Analysis - The company's gross margin for 2024 was 41.7%, down by 2.6 percentage points year-on-year, with all main business segments experiencing a decline in gross margin [7]. - The net profit margin attributable to shareholders was 15.2%, a decrease of 7.3 percentage points year-on-year, primarily due to lower gross margins and increased expense ratios [7]. Financial Health - The company reported a net cash flow from operating activities of 1.15 billion yuan for 2024, a decrease of 0.22 billion yuan year-on-year, mainly due to the significant drop in net profit [8]. - The accounts receivable at the end of 2024 stood at 0.54 billion yuan, showing a slight decrease, while contract liabilities were approximately 0.38 billion yuan, also reflecting a decline [8]. Dividend and Valuation - The company has maintained a strong dividend record since its listing, with a cumulative dividend payout ratio close to 80%. The 2024 dividend payout ratio reached a record high of 99%, corresponding to a dividend yield of approximately 4.7% [9]. - Based on the 2024 financial data and industry demand forecasts, the company’s net profit estimates for 2025 and 2026 have been adjusted to 1.05 billion yuan and 1.11 billion yuan respectively, with a new estimate for 2027 at 1.20 billion yuan [9].