ZEMIC(SZ:300114)2024-10-25 09:30Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company reported a revenue of 1.188 billion yuan for the first three quarters of 2024, a year-on-year decrease of 3.05%, while the net profit attributable to shareholders increased by 4.08% to 103 million yuan [1]. - The third quarter of 2024 saw a revenue of 370 million yuan, representing a year-on-year increase of 4.9% but a quarter-on-quarter decrease of 24.8%, with a net profit of 19 million yuan, marking a turnaround from a loss [1]. - The company has significantly increased its related party transaction limits for 2024, preparing for the completion of a restructuring that is expected to occur within the year [1]. - The full acquisition of Chengfei Group's assets, valued at 24.027 billion yuan, is anticipated to enhance the company's profitability significantly [1]. - The restructuring will allow the company to focus on core aviation business, expanding its product offerings and improving its competitive edge [1]. Financial Summary - The company’s projected revenues for 2024-2026 are 1.734 billion, 1.946 billion, and 2.214 billion yuan, respectively, with compound annual growth rates (CAGR) of 3.4%, 12.21%, and 13.77% [8][11]. - The net profit attributable to shareholders is expected to be 127 million, 151 million, and 178 million yuan for the same period, with net profit growth rates of 29.45%, 18.79%, and 18.13% [8][11]. - The gross margin is projected to improve to 37% by 2024, remaining stable through 2026 [8][11]. - The company’s earnings per share (EPS) are forecasted to be 0.22, 0.26, and 0.30 yuan for 2024, 2025, and 2026, respectively [8][11]. - The static acquisition price-to-earnings (PE) and price-to-book (PB) ratios for the transaction are 13.29x and 1.83x, respectively, which are considered reasonable compared to market expectations [1].