Xi'an Triangle Defense (300775) 光大证券·2024-08-27 02:03Investment Rating - The report has downgraded the investment rating of the company to "Accumulate" [2][4]. Core Views - The company is experiencing short-term pressure on performance, with a significant decline in revenue and net profit for the first half of 2024, reporting revenues of 977 million yuan, down 23.28% year-on-year, and a net profit of 291 million yuan, down 30.74% year-on-year [1]. - The company is making steady progress on its fundraising projects, which are expected to expand its product lines and market opportunities [1]. - The establishment of a joint venture, Santriple Aviation, aims to build a large-scale precision forging production line, enhancing the company's capabilities in manufacturing critical aerospace components [1][2]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 977 million yuan, with the main revenue sources being forged products, contributing 911 million yuan [1]. - The gross margin and net margin for H1 2024 were 42.31% and 29.83%, respectively, both showing a decline compared to the previous year [1]. Investment Projects - The investment progress for key projects includes 67.78% for the "Advanced Aerospace Components Intelligent Interconnected Manufacturing Base Project" and 72.71% for the "Aerospace Precision Forging Industry Deepening Project" [1]. - The company anticipates that by the end of 2024, the funding usage progress for several projects will reach 100% for the manufacturing base project and approximately 60% for others [1]. Joint Venture and Future Prospects - The company announced a joint venture with Xi Investment and others to establish Santriple Aviation, with an investment of 390 million yuan, aiming to build a precision intelligent forging production line with capacities of 1000MN and 1250MN [1]. - This new production line is expected to meet the needs of domestic large-scale aircraft manufacturing, enhancing the company's market position [1]. Earnings Forecast and Valuation - The net profit forecasts for 2024 and 2025 have been reduced by 13.47% and 9.42%, respectively, with new estimates for 2026 introduced [2]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.62 yuan, 1.99 yuan, and 2.33 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 14x, 11x, and 10x [2].