JIANGXI GUOKE DEFENCE GROUP CO.(688543)2024-10-18 11:39Investment Rating - The report assigns a "Buy" investment rating to the company [19]. Core Insights - The company is a key supplier of solid engines and ammunition for the military, with rapid growth in revenue and profit [8][19]. - In the first half of 2024, the company reported a revenue of 482 million yuan, a year-on-year increase of 20.57%, and a net profit attributable to the parent company of 80 million yuan, up 84.09% year-on-year [8][20]. - The company is one of the few domestic enterprises engaged in the research and production of solid engine power modules for missiles and rockets, maintaining long-term cooperation with major missile and rocket development sectors [8][10]. Summary by Sections 1. Leading Technology in Solid Engines and Ammunition - The company focuses on the research, production, and sales of solid engine power and control products, as well as ammunition equipment, primarily for military applications [8][11]. - The company has established a comprehensive technology system for various types of ammunition, achieving significant R&D results and core technologies, particularly in small-caliber air defense and anti-missile ammunition [8][11]. 2. Profit Forecast and Valuation - The company is expected to benefit from increased military exercises and ammunition procurement, with projected net profits for 2024, 2025, and 2026 being 178 million, 228 million, and 302 million yuan, respectively [19][20]. - The estimated earnings per share for the same years are 1.01, 1.30, and 1.72 yuan, with corresponding PE ratios of 44, 34, and 26 times [19][20]. 3. Financial Data and Growth - The company has shown a steady increase in revenue, with a compound annual growth rate (CAGR) of 35.57% from 2019 to 2023 [11][20]. - The revenue for 2023 was 1,040.25 million yuan, with a year-on-year growth of 24.25% [20]. - The net profit for 2023 was 140.69 million yuan, reflecting a year-on-year increase of 27.34% [20].