Hunan Aerospace Huanyu (688523) 民生证券·2024-10-30 09:03Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company reported a revenue of 270 million yuan for the first three quarters of 2024, representing a year-on-year increase of 33.0%. The net profit attributable to shareholders was 50 million yuan, with a slight increase of 0.4% year-on-year. The adjusted net profit was 30 million yuan, reflecting a year-on-year decrease of 13.7% [2]. - The revenue growth is primarily driven by the increase in sales of aviation equipment and communication products. The company has shown continuous revenue growth over three consecutive quarters [2]. - The gross margin for Q3 2024 was 52.0%, a decrease of 1.12 percentage points year-on-year, while the net margin was 27.7%, down 6.76 percentage points year-on-year. The overall gross margin for the first three quarters of 2024 was 43.4%, down 13.38 percentage points year-on-year [2]. - The company has increased its R&D investment, with R&D expenses reaching 40 million yuan, up 18.1% year-on-year, focusing on large aircraft and communication products [2]. - The company has initiated a share buyback plan, indicating confidence in its long-term development and commitment to shareholder returns [2]. - The strategic focus includes satellite, large aircraft, and drone industries, with significant developments in satellite communication and large aircraft projects [2]. Financial Summary - For the first three quarters of 2024, the company achieved revenues of 270 million yuan, with quarterly revenues of 40 million yuan, 120 million yuan, and 110 million yuan for Q1, Q2, and Q3 respectively, showing year-on-year growth rates of 71.8%, 50.3%, and 8.5% [2]. - The projected net profits for 2024, 2025, and 2026 are 145 million yuan, 203 million yuan, and 281 million yuan respectively, with corresponding PE ratios of 60x, 43x, and 31x [2][3]. - The company’s total assets are projected to grow from 2,329 million yuan in 2023 to 3,045 million yuan by 2026, with a steady increase in shareholder equity [6].