NNCC(SH:600435) SINOLINK SECURITIES·2024-10-25 03:30Investment Rating - The report maintains a "Buy" rating for the company [1][14][17]. Core Views - The company reported a significant revenue decline of 66.8% year-on-year for the first three quarters of 2024, with a revenue of 796 million [1]. However, in Q3 2024, the revenue improved to 503 million, showing a year-on-year decline of 25.6% but a quarter-on-quarter increase of 134.7% [1][6]. - The company achieved a turnaround in Q3 2024, reporting a net profit of 470,000, despite a year-on-year decline of 98.9% [1][6]. - The increase in contract liabilities, which rose by 34.78% to 103 million, indicates a steady flow of orders [1][11]. - The gross margin remained stable at 31.2% for the first three quarters, with a slight increase in Q3 to 26.1% year-on-year [1][8]. - The company is positioned as a leader in the guided control platform sector, with expectations for significant growth driven by demand for long-range fire systems [1][14]. Summary by Sections Company Performance - For Q3 2024, the company reported a revenue of 503 million, a year-on-year decrease of 25.6% and a quarter-on-quarter increase of 134.7% [1][6]. - The net profit for Q3 2024 was 470,000, marking a significant recovery from previous losses [1][6]. Financial Metrics - The gross margin for the first three quarters was 31.2%, with a slight increase in Q3 to 26.1% year-on-year [1][8]. - The net profit margin for Q3 was 0.1%, reflecting a year-on-year decline of 5.5% [1][8]. Order and Contract Insights - Contract liabilities increased to 103 million, up 34.78% from the end of H1 2024, indicating a positive trend in order placements [1][11]. - Prepayments also rose by 41.86% to 50 million, suggesting strong demand for inventory [1][11]. Future Outlook - The company anticipates a significant rebound in net profit for 2024-2026, projecting 150 million, 420 million, and 610 million respectively, with corresponding PE ratios of 116, 40, and 28 [1][14].