SACO(SZ:002025) Changjiang Securities·2024-09-04 03:12Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company is experiencing a decline in revenue and net profit due to fluctuations in demand within traditional aerospace and defense sectors, with a 19.31% year-on-year decrease in revenue to 2.921 billion yuan and a 10.00% decrease in net profit to 385 million yuan for the first half of 2024 [5][6]. - The company is implementing a low-cost strategy that has led to a historical high in gross margin, with connector and integrated product gross margins increasing by 13.28% to 48.75% and motor and control component margins increasing by 10.09% to 42.82% [6]. - The company is expanding its production capacity, with all projects expected to be operational by the end of 2024, which will help meet downstream demand [6]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 2.921 billion yuan, down 19.31% year-on-year, and a net profit of 385 million yuan, down 10.00% year-on-year [5][6]. - For Q2 2024, revenue was 1.308 billion yuan, a decrease of 28.85% year-on-year, and net profit was 160 million yuan, down 23.36% year-on-year [5]. Strategic Initiatives - The company is focusing on expanding into new markets and sectors, including defense, communication, commercial aerospace, marine engineering, low-altitude economy, and new energy, with a continuous increase in product orders from these areas [6]. - The implementation of the "2024 Cost Reduction and Efficiency Improvement Plan" is effectively enhancing the company's market competitiveness and operational efficiency [6]. Future Projections - The company is projected to achieve net profits of 790 million yuan, 1.06 billion yuan, and 1.47 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 6%, 33%, and 39% [6].