CATEC(600879) 长江证券·2024-09-04 03:41Investment Rating - The investment rating for the company is "Buy" and is maintained [4] Core Views - The company reported a 20% year-on-year decline in revenue for the first half of 2024, totaling 7.712 billion yuan, and a 35.77% decrease in net profit to 249 million yuan. The second quarter of 2024 saw a 24.73% drop in revenue to 3.898 billion yuan and a 48.41% decline in net profit to 106 million yuan [4] - The decline in overall revenue and performance is attributed to fluctuations in traditional aerospace defense demand and intensified competition in the wire and cable business. However, the drone business experienced significant growth, with revenue increasing by 71.41% year-on-year to 623 million yuan and net profit rising by 361.02% [4] - The company aims to leverage emerging markets for sustainable development, focusing on product layout adjustments and cost-effective sustainable development initiatives, which are expected to enhance competitive advantages and improve gross margin levels [4] - The overall gross margin for the first half of 2024 was 19.44%, an increase of 1.81 percentage points year-on-year. The aerospace military products segment maintained a high gross margin of 22.14%, while the civil products segment faced challenges with a gross margin around 10% due to insufficient demand and intense price competition [4] Financial Summary - The company expects to achieve net profits of 1.165 billion yuan, 1.062 billion yuan, and 1.309 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 122%, -8.82%, and 23% [5] - As of the end of the first half of 2024, accounts receivable reached 10.512 billion yuan, and inventory increased to a historical high of 21.042 billion yuan, indicating proactive measures to address downstream demand [5] - The company anticipates a recovery in revenue and performance in the second half of 2024, as cash flow is typically concentrated in the fourth quarter [5]