PONY(300887) Changjiang Securities·2024-10-25 01:43Investment Rating - The investment rating for the company is "Buy" and it is maintained [7]. Core Views - The company reported a revenue of 1.123 billion yuan for the first three quarters of 2024, a year-on-year decline of 36.1%. The net profit attributable to the parent company was -234 million yuan, compared to a profit of 105 million yuan in the same period last year. For Q3 2024, revenue was 395 million yuan, down 30.8% year-on-year, with a net profit of -63 million yuan, compared to a profit of 12 million yuan in the same quarter last year [4][5]. - The company is currently facing significant pressure due to special industry events affecting its key investment areas in military and biomedicine. In response to the macroeconomic environment, the company is actively adjusting its customer structure by reducing the proportion of government orders [4][5]. - The company is expected to remain in a painful transformation period for the foreseeable future, with a close watch on potential turning points [4][5]. Summary by Sections Financial Performance - The company experienced a continuous decline in revenue, with Q3 2024 showing a revenue drop of 30.8%, which is an improvement compared to the declines of -36.4% and -40.5% in Q1 and Q2 respectively. The company has faced challenges in order acquisition since Q3 2023 due to industry-specific events and adjustments in customer structure [4][5]. - The net profit for Q3 2024 was -63 million yuan, with a slight reduction in losses compared to previous quarters. The decline in revenue has significantly impacted the gross margin, which fell by 21.43% year-on-year in the first half of the year [4][5]. Future Outlook - The company is projected to generate revenues of 1.6 billion yuan, 1.77 billion yuan, and 1.96 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of -35.0%, 10.6%, and 10.9%. The net profit attributable to the parent company is expected to be -92 million yuan, 109 million yuan, and 201 million yuan for the same years [5][10].