Sichuan Jiuzhou Electronic (000801) 东吴证券·2024-08-28 21:00Investment Rating - The report maintains a "Buy" rating for the company, citing its leadership in the domestic air traffic control equipment sector and its strategic positioning in the low-altitude economy [2] Core Views - The company faces short-term profitability challenges, with a 8.34% YoY decline in H1 2024 revenue to 1.757 billion yuan and a 20.76% YoY drop in net profit attributable to shareholders to 68 million yuan [1] - Government subsidies, accounting for 44.58% of non-core business profits, have alleviated financial pressure, while a 142.28% YoY increase in fixed assets to 724 million yuan reflects long-term competitiveness investments [2] - The company is strengthening its technological innovation and industry chain layout, with strategic acquisitions and the establishment of new subsidiaries to enhance its low-altitude economy business [2] Financial Performance - The company's 2024-2026 net profit forecasts are adjusted to 254/322/353 million yuan, down from previous estimates of 330/452/550 million yuan, with corresponding P/E ratios of 33/26/24 [2] - H1 2024 operating cash flow decreased by 24.68% YoY to 130 million yuan, impacting liquidity and debt repayment capabilities [1] - R&D investment in H1 2024 decreased by 7.32% YoY, potentially affecting long-term competitiveness [1] Market Position and Strategy - The company is a national high-tech enterprise with significant market recognition both domestically and internationally, holding titles such as "National Green Factory" and "National Intellectual Property Demonstration Enterprise" [2] - It has made strategic investments, including acquiring a 5% stake in Sichuan Jiuzhou Satellite Navigation Investment Development Co., Ltd., to bolster technological innovation and product development [2] - The company is actively developing its low-altitude economy business, establishing new subsidiaries and advancing low-altitude flight testing to build a comprehensive commercial ecosystem [2] Financial Projections - Revenue is projected to grow from 4.084 billion yuan in 2024 to 5.539 billion yuan in 2026, with YoY growth rates of 6.57%, 24.07%, and 9.32% respectively [1] - Net profit attributable to shareholders is expected to increase from 253.77 million yuan in 2024 to 352.91 million yuan in 2026, with YoY growth rates of 26.65%, 26.93%, and 9.56% [1] - EPS is forecasted to rise from 0.25 yuan in 2024 to 0.35 yuan in 2026, with P/E ratios decreasing from 33.25 to 23.91 over the same period [1]