AVIC Forstar S&T (BJ:835640) Soochow Securities·2024-08-28 16:30Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 379 million yuan for the first half of 2024, a year-on-year decrease of 19.2%, and a net profit attributable to shareholders of 34 million yuan, down 62.7% year-on-year. The gross margin significantly declined by 8.1 percentage points to 34.1% [2] - Revenue and gross margin decreased due to a decline in military defense-related income, impacted by insufficient orders and price reductions in defense products. Specifically, revenue from RF coaxial connectors was 154 million yuan, down 27.5% year-on-year, and revenue from RF coaxial cable components was 219 million yuan, down 12.0% year-on-year [2] - The rapid development of satellite internet and the demand for 5G-A and 6G technologies are expected to create new opportunities. In 2024, approximately 100 launch missions are anticipated, significantly up from 67 in 2023, marking a pivotal year for commercial space industry development [2] - The company is facing a temporary decrease in demand in the defense sector, which, along with increased R&D expenses, has negatively impacted performance. Operating profit decreased by 59.35% year-on-year, primarily due to reduced demand and price cuts in military products [2] - The company has resumed the review process for its private placement, with the total fundraising amount adjusted from 350 million yuan to 300 million yuan. This progress is seen as beneficial for seizing industry opportunities and overcoming current challenges [3] - The earnings forecast has been revised downwards, with expected revenues for 2024-2026 set at 860 million, 968 million, and 1.162 billion yuan respectively, and net profits at 105 million, 143 million, and 165 million yuan respectively. The P/E ratios for 2024-2026 are projected to be 18.98, 13.93, and 12.08 times [3]