NNCC(SH:600435) Minsheng Securities·2024-10-25 11:30Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company reported a revenue of 796 million yuan for the first three quarters of 2024, a year-over-year decline of 66.8%, with a net profit attributable to shareholders of -74 million yuan, compared to 185 million yuan in the same period last year [1]. - The company has shown signs of recovery, with a sequential revenue increase of 134.7% in Q3 2024, following two consecutive quarters of revenue growth [1]. - The gross margin for Q3 2024 improved by 2.5 percentage points to 26.1%, while the net margin decreased by 5.2 percentage points to 1.0% [1]. - The company is focusing on its core business and has seen marginal improvements in demand, indicating a potential recovery in profitability [1]. Financial Performance Summary - For the first three quarters of 2024, the company experienced a net cash flow from operating activities of -1.098 billion yuan, compared to -718 million yuan in the same period last year [1]. - The company’s R&D expenses increased by 7.1% year-over-year to 165 million yuan, with the R&D expense ratio rising to 20.7% [1]. - The company’s total revenue projections for 2024 to 2026 are 196.9 million yuan, 489.6 million yuan, and 621.3 million yuan, respectively, with corresponding net profits of 59 million yuan, 295 million yuan, and 455 million yuan [2][4]. - The projected PE ratios for 2024 to 2026 are 292x, 58x, and 38x, respectively [2][4].