M&S ELECTRONICS(SH:688311) Zheng Quan Zhi Xing·2025-06-22 08:30Core Viewpoint - The company experienced a significant decline in revenue for the fiscal year 2024, with total revenue reported at 139 million yuan, a decrease of 70.90% compared to 2023, primarily due to industry environmental factors and delays in project execution [1][6][10]. Revenue Analysis - The company's revenue for 2024 was 139 million yuan, down from the previous year, with a core revenue of 135 million yuan after excluding unrelated business income [1][11]. - The fourth quarter saw a notable increase in revenue contribution, rising from 17.22% to 37.57% of total revenue, indicating a significant seasonal distribution change [1][9]. Order and Project Delays - Major delays in project execution were attributed to factors such as suspended contract execution and unfulfilled order deliveries, affecting approximately 245.82 million yuan in total order value [1][10]. - Specific clients, including various subsidiaries of China Aerospace Science and Technology Corporation, faced delays in project deliveries, with some expected to resume in 2025 [2][4]. New Orders and Future Projections - The company reported significant new orders for 2023 and 2024, with a focus on satellite navigation and communication products, which are expected to support revenue projections for 2025 [6][8]. - The total order backlog as of April 2024 was substantial, indicating potential revenue recovery as projects resume execution [6][10]. Market and Industry Context - The military industry remains a core focus for the company, with government defense spending projected to increase by 7.2% in 2025, suggesting ongoing demand in the sector [7][8]. - The company has maintained a strong competitive position within the industry, with expectations of improved revenue as the impact of previous environmental factors diminishes [8][10]. Financial Performance Metrics - The company reported a net loss of 272 million yuan for 2024, a significant increase in losses compared to the previous year, with a gross margin decline of 24.31 percentage points to 25.98% [11]. - The gross margin for satellite navigation products decreased by 29.93 percentage points to 26.45%, while satellite communication products saw a reduction of 11.22 percentage points to 20.45% [11].