ZHENHUA(000733) 中国银河·2024-10-29 08:30Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company reported a revenue of 3.74 billion yuan for the first three quarters of 2024, a year-on-year decline of 37.97%, with a net profit attributable to shareholders of 645 million yuan, down 68.69% year-on-year [1]. - The decline in revenue and profit is attributed to insufficient release of new research and production projects, along with downward pressure on product prices, particularly in the high-value-added electronic components sector [1]. - The company's gross margin for the first three quarters was 49.6%, a decrease of 11.2 percentage points year-on-year, while the expense ratio increased by 7.1 percentage points to 20.2% [1]. - The company’s major shareholder, China Zhenhua, plans to increase its stake in the company by investing between 100 million and 200 million yuan, reflecting confidence in the company's future [3]. Financial Performance Summary - For 2024, the company aims for a revenue target of 6.9 billion yuan and a total profit of 2 billion yuan, having completed 54.2% and 37.5% of these targets respectively [2]. - The company’s construction projects are steadily increasing, with ongoing investments aimed at upgrading product quality and expanding market presence [2]. - The company’s projected financials for 2024-2026 include net profits of 1.02 billion, 1.38 billion, and 1.74 billion yuan respectively, with corresponding EPS of 1.84, 2.49, and 3.14 yuan [3][8].