CATEC(600879) 长江证券·2024-06-27 05:31Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company is divesting its low-efficiency cable business to focus on its core defense operations, enhancing its position as a key supplier in the aerospace industry and the drone sector. This strategic shift is expected to lead to a significant improvement in profitability and long-term growth potential [3][4]. - The company has announced a transfer of 51% equity in its subsidiary, which is expected to result in a one-time investment gain of approximately 510 million yuan for the fiscal year 2024. This divestment will allow the company to concentrate on aerospace electronics and unmanned equipment, which are anticipated to drive profitability [3][4]. - The company is positioned as a primary manufacturer of military drones, with a comprehensive product range that includes various types of unmanned aerial vehicles (UAVs). This diversification is expected to leverage the company's technological advantages and enhance its market competitiveness [4]. Summary by Sections Company Overview - The company is transitioning from aerospace electronics to military electronics, systematically divesting from non-core assets. The divestment of the cable business, which has been underperforming, is expected to improve the company's overall profitability [3][4]. Financial Performance - The company reported a net profit decline due to losses in its cable business, but excluding this subsidiary, the net profit growth rate reached 32.66%. The gross margin for military products has been increasing, reaching a record high of 23.1% in 2023 [3][4]. - Forecasts for net profit from 2024 to 2026 are projected at 1.3 billion, 1.2 billion, and 1.5 billion yuan, respectively, with significant growth expected in 2024 [4]. Market Position - The company is a key player in the military drone market, focusing on small to medium-sized UAV systems. It has a well-defined product line that meets the high integration and control system requirements of modern drones [4]. - The company benefits from its dual role as both a primary manufacturer and a core supplier, which is expected to enhance its profitability as it integrates its assets and expands its drone production [4].