Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue at 489 million yuan, down 44.9% year-over-year, and a net loss of 68 million yuan [1]. - The second quarter of 2024 showed signs of improvement, with revenue of 289 million yuan, a 25.9% year-over-year decline but a 44.6% increase quarter-over-quarter, indicating a potential turning point in performance [1]. - The decline in performance is attributed to weak demand for military and civilian products, a drop in gross margin, and a substantial increase in R&D expenses [1]. - The company expects a gradual improvement in performance throughout 2024, with a potential positive growth rate in Q3 [1]. Financial Performance Summary - For the first half of 2024, the company achieved a gross margin of 42.9%, down 7.2 percentage points year-over-year, with Q2 gross margin at 45.4%, down 11.3 percentage points [1]. - R&D expenses increased significantly to 192 million yuan, up 26.3%, leading to a higher R&D expense ratio [1]. - The company’s subsidiaries underperformed, with Shenzhen Leino's revenue down 51.4% year-over-year, while Wuhan Yongli's revenue decreased by 9.5% [1]. - The company has high inventory levels but also substantial cash reserves, providing operational flexibility for Q4 [1]. Future Outlook - The company is expanding its production capacity, with new projects expected to come online in 2025, which could significantly enhance revenue potential [1]. - The report forecasts net profits for 2024-2026 to be -41 million, 185 million, and 259 million yuan respectively, with corresponding EPS of -0.08, 0.34, and 0.48 yuan [2][7]. - The anticipated recovery in downstream demand in Q4 2024 is expected to provide substantial operational leverage for the company [2].
新雷能点评报告:Q3业绩增速拐点将现,静待订单东风