WEIXING NBM(002372) 光大证券·2025-04-23 10:10Investment Rating - The report maintains a "Buy" rating for the company [5][9]. Core Views - The company has experienced a narrowing decline in revenue across its main business segments, with a proposed cash dividend of 7.86 billion yuan, resulting in a dividend payout ratio of 99%, the highest since its listing [5][9]. - The company aims for a revenue target of 65.8 billion yuan for 2025, reflecting a year-on-year growth of 5% [5]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 6.3 billion yuan, a decrease of 2% year-on-year, with net profit attributable to shareholders at 950 million yuan, down 33% [5][6]. - The fourth quarter of 2024 saw total revenue of 2.5 billion yuan, a decline of 5% year-on-year [5]. Main Business Segments - Revenue from PPR pipes, PE pipes, PVC pipes, and other products for 2024 was 2.94 billion, 1.42 billion, 830 million, and 1.03 billion yuan respectively, with year-on-year changes of -2%, -7%, -8%, and +13% [6]. - The retail business, primarily driven by PPR products, was less impacted compared to the engineering business, which saw a more significant decline [6]. Profitability and Costs - The company's gross margin for 2024 was 41.7%, down 2.6 percentage points year-on-year, with an increase in the expense ratio to 22.2% [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]. Cash Flow and Financial Health - The net cash flow from operating activities for 2024 was 1.15 billion yuan, a decrease of 220 million yuan year-on-year [8]. - The company maintained a healthy financial status, with accounts receivable at 540 million yuan and contract liabilities at approximately 380 million yuan by the end of 2024 [8]. Dividend Policy and Valuation - The company has a strong dividend history, with a cumulative payout ratio close to 80% since its listing, and the 2024 dividend payout ratio reaching 99% [9]. - The current price corresponds to a dynamic P/E ratio of 19x for 2025, indicating potential for value reassessment [9].