火炬电子：2024年三季报点评：业绩逐季改善，全年业绩仍有支撑

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance shows a trend of improvement quarter by quarter, with a significant year-on-year increase of 60.84% in net profit for Q3 2024, despite a decline in overall revenue due to market demand slowdown [1] - The balance sheet is relatively lightweight, with a notable decrease in accounts receivable and payable, leading to a significant improvement in operating cash flow, which increased by 41.44% year-on-year [2] - The company has engaged in several capital operations to enhance operational efficiency and market competitiveness, including a capital increase in its subsidiary and acquiring a 40% stake in Fujian Millimeter Electronics [3] - The forecast for net profit from 2024 to 2026 has been slightly adjusted, with expected figures of 367 million, 518 million, and 666 million yuan respectively, corresponding to P/E ratios of 35, 25, and 20 times [4] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 2.151 billion yuan, a year-on-year decrease of 20.73%, and a net profit of 226 million yuan, down 22.63% year-on-year [1] - The third quarter saw a revenue of 725 million yuan, a decline of 36.23% year-on-year, but the net profit increased significantly due to higher sales of value-added products [1] Balance Sheet and Cash Flow - As of Q3 2024, accounts receivable and accounts payable decreased by 29.67% and 26.81% respectively, while inventory saw a slight decline of 0.15% [2] - The net cash flow from operating activities reached 568 million yuan, marking a 41.44% increase year-on-year [2] Capital Operations - The company announced three significant capital operations in 2024, including a 100 million yuan capital increase in its subsidiary and a 120 million yuan investment in Fujian Millimeter Electronics to enhance its capital strength [3] Profit Forecast - The company expects strong demand in the defense sector to drive revenue growth in its component business, with a slight downward adjustment in profit forecasts for 2024-2026 [4]