WEIXING NBM(002372) 国信证券·2025-04-25 09:30Investment Rating - The investment rating for the company is "Outperform the Market" [5][28]. Core Views - The company's retail fundamentals remain solid, with a steady increase in market share and a high dividend payout further enhancing investor returns. Despite a challenging demand environment, the company has managed to maintain a resilient revenue base [3][28]. - The company reported a revenue of 6.27 billion yuan in 2024, a year-on-year decrease of 1.8%, and a net profit attributable to shareholders of 0.95 billion yuan, down 33.5% year-on-year. The decline in profit is primarily attributed to increased marketing expenses and reduced investment income [1][9]. - The company has successfully expanded its product offerings and market presence, particularly in the pipeline segment, which saw a volume increase of 2.3% year-on-year, despite revenue declines in specific product categories [2][15]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 6.27 billion yuan, with a net profit of 0.95 billion yuan and an EPS of 0.61 yuan per share. The fourth quarter revenue was 2.49 billion yuan, reflecting a year-on-year decline of 5.26% [1][9]. - The overall gross margin for 2024 was 41.7%, down 2.6 percentage points year-on-year, with a significant increase in sales expenses by 14% due to heightened marketing efforts [3][20]. Product and Market Development - The company reported a total pipeline sales volume of 300,000 tons in 2024, with revenues from PPR, PE, and PVC products showing declines of 1.7%, 6.9%, and 8.1% respectively. However, the company has successfully increased its market share in the pipeline segment [2][15]. - The overseas business showed promising growth, generating 0.36 billion yuan in revenue, a year-on-year increase of 26.7%, with Singapore operations turning profitable [2][15]. Cash Flow and Dividends - The company generated an operating cash flow of 1.15 billion yuan in 2024, despite a 16.5% decline year-on-year. The cash collection ratio remained healthy, supporting a high dividend payout of 0.943 billion yuan, resulting in a dividend payout ratio of 99% [3][20][28].