712 Corp.(603712)2024-08-31 04:41Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Views - The company reported a revenue of 1.202 billion yuan for the first half of 2024, a year-on-year decrease of 12.95%, and a net profit attributable to shareholders of 67.84% [1] - Despite the pressure on performance in the first half of 2024, there was a marginal improvement in Q2, with revenue of 712 million yuan, a year-on-year decrease of 21.6% but a quarter-on-quarter increase of 45.3% [1] - The company has successfully secured multiple new contracts in both military and civilian sectors, indicating ongoing market expansion despite current performance challenges [1] Financial Performance Summary - For the first half of 2024, the company's revenue was 1.202 billion yuan, with a net profit of 67 million yuan, reflecting a significant decline compared to the previous year [1] - The gross margin for the first half of 2024 was 35.8%, down 9.8 percentage points year-on-year, but showed a slight recovery to 36.0% in Q2 [1] - The company has maintained good cost control, with a period expense ratio of 30.0%, only a slight increase of 0.1 percentage points year-on-year [1] Future Financial Projections - The company is projected to achieve revenues of 3.203 billion yuan in 2024, with a net profit of 403 million yuan, and EPS of 0.52 yuan [9] - Expected revenue growth rates for 2024, 2025, and 2026 are -1.97%, 26.83%, and 23.64% respectively, with net profit growth rates of -8.40%, 26.35%, and 18.61% [9][11] - The projected PE ratios for 2024, 2025, and 2026 are 30.05, 23.78, and 20.05 respectively [9][11]