NWL Latest Report

Performance of the Quarterly Report

Based on Neway Valve's (NWL) financial data as of December 31, 2024, the Company's total operating revenue was US$1.949 billion, a year-on-year decrease of 6.12% from US$2.076 billion in 2023. This change indicates that the Company faces certain pressure in revenue and may affect its overall profitability. Analysis suggests that market environment changes, sales strategy adjustments, cost increases, and industry characteristics may lead to a decrease in revenue.

Key Data in the Financial Report

1. The Company's total operating revenue in 2024 was US$1.949 billion, a year-on-year decrease of 6.12% from US$2.076 billion in 2023.

2. The sales cost in 2024 was US$1.283 billion, a year-on-year decrease from US$1.455 billion in 2023, but may still affect the profit margin.

3. Marketing, sales, and general management expenses in 2024 were US$565 million, an increase from US$544 million in 2023.

4. The Company's net profit margin in the first quarter of 2024 slightly increased, but the net profit attributable to parent decreased by 3.03% year-on-year.

5. Among its competitors, Neway Valve achieved a revenue of RMB4.455 billion in the first three quarters of 2024, a year-on-year increase of 5.09%, and a significant increase in net profit attributable to parent.

Peer Comparison

1. Industry-wide analysis: The overall market revenue in 2024 was affected by the economic environment and consumer confidence, and many companies in the same industry also faced pressure in revenue decline. The intensified competition within the industry may lead to a decrease in overall revenue levels. This trend also affected Neway's revenue performance.

2. Peer evaluation analysis: Compared with peers, Neway's revenue decline was relatively smaller, showing its relative stability in the industry. However, other companies in the industry adopted more effective strategies to maintain or enhance revenue levels, which may put Neway at a disadvantage in competition.

Summary

Neway's revenue decline was mainly affected by changes in the market environment, sales strategy adjustments, and cost increases. Although similar challenges were faced by companies in the same industry, Neway showed relative stability in the revenue decline. However, the intensified industry competition and the lack of effective strategies may pose challenges to future growth.

Opportunities

1. With the improvement of liquefaction and transportation capacity in 2025, Neway's product demand is expected to increase, providing a market opportunity.

2. Neway's breakthrough in the high-end valve market, launching new products and obtaining bulk orders, indicates its potential for further market expansion.

3. The Company's planned second-phase expansion project for fluid will increase the supply of high-end market products, helping to enhance competitiveness.

Risks

1. Macroeconomic fluctuations may continue to affect customer demand, leading to revenue decline.

2. Intensified competition within the industry may lead to price wars, compressing profit margins.

3. The increase in marketing and management expenses may further pressure profitability.