Xi'an Triangle Defense (300775) 东吴证券·2024-08-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance is under short-term pressure, with a significant decline in revenue and net profit for the first half of 2024. Revenue decreased by 23.28% year-on-year to 977 million yuan, while net profit fell by 30.74% to 291 million yuan. The cash flow from operating activities was negative at -283 million yuan, a decline of 517.69% year-on-year [1][2] - Despite the short-term challenges, the company is actively investing in key projects to support long-term development and industrial upgrades, with a total of 641 million yuan invested in the first half of 2024, bringing the cumulative investment to 1.379 billion yuan. Projects include the construction of an intelligent manufacturing base for aviation components and enhancements in precision forging [2] - The company is establishing a joint venture to create an advanced production line for large aerospace forgings, with an investment of 390 million yuan, which is expected to enhance its competitive position in the market and meet domestic demand for various aircraft types [2] - The earnings forecast for 2024-2026 has been slightly adjusted downwards, with net profit estimates revised to 891 million yuan, 1.063 billion yuan, and 1.301 billion yuan for 2024, 2025, and 2026 respectively, corresponding to P/E ratios of 13, 11, and 9 times [2] Summary by Sections Financial Performance - In the first half of 2024, total revenue was 977 million yuan, down 23.28% year-on-year. Net profit was 291 million yuan, a decrease of 30.74% year-on-year. The cash flow from operating activities was -283 million yuan, a decline of 517.69% year-on-year [1][2] Investment Projects - The company has invested 641 million yuan in key projects in the first half of 2024, with a total of 1.379 billion yuan invested. Key projects include the intelligent manufacturing base for aviation components and precision forging enhancements, with progress on schedule despite some delays [2] Joint Ventures and Production Capacity - A joint venture named Santriple Aviation is being established with an investment of 390 million yuan to create a production line for large aerospace forgings, which is expected to improve product integrity and reduce manufacturing costs [2] Earnings Forecast - The company's net profit forecasts for 2024, 2025, and 2026 have been adjusted to 891 million yuan, 1.063 billion yuan, and 1.301 billion yuan respectively, with corresponding P/E ratios of 13, 11, and 9 times [2]