Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 42.80 CNY [1]. Core Views - The company experienced a year-on-year decline in revenue and net profit due to a temporary slowdown in downstream demand, but there was a quarter-on-quarter improvement in net profit [1]. - The company is focusing on opportunities in the commercial aerospace sector, particularly in the development of low-cost, high-reliability interconnect products [1]. - The financial forecast indicates a challenging year ahead with expected revenue decline in 2024, but potential recovery in subsequent years [2][3]. Financial Performance Summary - For 1H24, the company reported revenue of 329 million CNY, a year-on-year decrease of 29.0%, and a net profit attributable to shareholders of 25 million CNY, down 44.2% [1]. - In 2Q24, the company achieved a net profit of 15 million CNY, a quarter-on-quarter increase of 45%, despite a year-on-year decrease of 55.4% [1]. - The gross margin for the company's main products has declined, with the net profit margin also showing a year-on-year decrease [1]. Revenue and Profit Forecast - The company expects revenue to decrease to 783 million CNY in 2024, down 8.1% from 2023, with a projected net profit of 70 million CNY, a decline of 10.5% [3]. - The forecast for 2025 and 2026 shows a recovery with revenues expected to rise to 962 million CNY and 1,156 million CNY, respectively [3]. Key Financial Ratios - The report highlights a projected PE ratio of 66 for 2024, decreasing to 39 by 2026, indicating a potential improvement in valuation as earnings recover [3]. - The company's gross margin is expected to remain stable around 40.67% in 2024, with a slight decrease in net profit margin to 9.00% [3]. Cash Flow and Operational Efficiency - The operating cash flow is expected to improve significantly in 2024, with a forecast of 216 million CNY compared to 19 million CNY in 2023 [4]. - The report notes an increase in the cash ratio to 1.15 in 2024, indicating better liquidity management [3].
陕西华达：2024年半年报点评：2Q24净利润环比改善；把握商业航天发展机遇