GATD(688239) 民生证券·2024-10-31 04:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its long-term potential in the aerospace sector [2][4]. Core Views - The company reported a revenue of 1.413 billion yuan for the first three quarters of 2024, a year-over-year decrease of 17.4%, with a net profit attributable to shareholders of 147 million yuan, down 11.7% year-over-year [2]. - The company is acquiring 90% of Chengdu Chenghang Precision Processing Co., aiming to enhance its capabilities in precision processing and assembly, which is expected to strengthen its competitive position in the aerospace and gas turbine industries [2]. - The report highlights an improvement in profitability metrics, with gross margin increasing by 1.5 percentage points to 29.1% for the first three quarters of 2024, and a net profit margin increase of 0.6 percentage points to 10.4% [2]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 412 million yuan, a decrease of 22.2% year-over-year, with a net profit of 44 million yuan, down 14.1% year-over-year [2]. - The gross margin for Q3 2024 improved significantly by 8.9 percentage points to 32.9%, while the net profit margin rose by 0.9 percentage points to 10.5% [2]. - The company’s operating cash flow improved, with a net cash flow from operating activities of -14 million yuan for the first three quarters of 2024, an improvement from -42 million yuan in the same period last year [2]. Acquisition and Strategic Moves - The acquisition of Chengdu Chenghang Precision Processing Co. is seen as a strategic move to extend the company's supply chain downstream, enhancing its overall strength in the aerospace sector [2]. - The report emphasizes the expected growth in demand for domestic aerospace and gas turbine industries, particularly with the delivery of the C919 aircraft and the growth of the domestic gas turbine market [2]. Earnings Forecast - The company is projected to achieve net profits of 207 million yuan, 316 million yuan, and 405 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 28x, 18x, and 14x [2][5].