ComNav Technology (SH:688592) Zheng Quan Zhi Xing·2025-06-30 16:22Core Viewpoint - The company reported a decline in gross profit margin and net profit, with significant fluctuations in revenue and profitability across different quarters in 2024, indicating challenges in maintaining profitability amidst rising costs and competitive pressures [1][2][3]. Financial Performance - In 2024, the company achieved a gross profit margin of 48.18%, down 3.98 percentage points from 2023. Revenue in Q3 increased by 68.55% year-on-year, while net profit decreased by 19.65%. In Q4, revenue decreased by 13.24%, and net profit turned negative, decreasing by 158.81% [1][2]. - The first quarter of 2025 showed a 13.32% increase in revenue year-on-year, but net profit fell by 46.24% to -10.38 million yuan [1]. Revenue Breakdown - The company’s revenue sources include modules and data applications, geographic information applications, and intelligent driving and digital construction. The main products include high-precision GNSS boards/modules, data collection equipment, and agricultural automatic navigation systems [2][3]. - The revenue from high-precision GNSS boards/modules was 5,965.13 million yuan, down 6.08%, with a gross margin of 48.36%, down 15.62%. Data collection equipment revenue was 7,608.87 million yuan, up 17.71%, with a gross margin of 31.19%, down 6.09% [2][3]. Customer and Supplier Dynamics - The company’s major customers include various entities in emerging markets, with significant sales to Unit B, which accounted for 4.53% of total revenue in 2024. Despite lower margins, the collaboration is deemed commercially reasonable due to the large order scale [5][6]. - Sales to high-margin customers like Unit C decreased significantly, impacting the overall gross margin of high-precision GNSS boards/modules [6]. Cost Structure and Material Costs - The company faced increased material costs, particularly for high-precision GNSS boards/modules sold to Unit B, which included additional patent fees. The average material cost for these boards was 21,430.87 yuan per unit [8][9]. - The overall direct material costs for data collection equipment decreased by 5.19% in 2024, attributed to lower procurement prices for components [10][12]. Industry Comparison - The company’s gross margin of 48.18% is compared with industry peers, showing a consistent trend in margin fluctuations. The gross margin for high-precision GNSS boards/modules was 48.36%, while data collection equipment was 56.80% [14][15]. - The competitive landscape in the satellite navigation industry is intensifying, with a high degree of domestic product availability leading to price pressures [16][17]. Sales Model Adjustments - The company has adjusted its sales model, increasing the proportion of domestic distributors, which has slightly lowered the overall gross margin due to the lower margins associated with domestic sales [6][7]. - The sales of high-margin products are critical, and any decline in their sales proportion could further impact the gross margin negatively [17].