ZMD(SH:688636) Minsheng Securities·2024-10-25 13:00Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company reported a revenue of 210 million yuan for the first three quarters of 2024, a year-on-year decrease of 47.7%, with a net profit attributable to shareholders of -10 million yuan, compared to 60 million yuan in the same period last year [1]. - The gross margin has shown stability over the past six quarters, with a gross margin of 48.9% in Q3 2024, an increase of 2.40 percentage points year-on-year [1]. - Inventory and contract liabilities have significantly increased compared to the beginning of the year, indicating a gradual recovery in demand [1]. - The company has successfully expanded its embedded computer capacity project, which is expected to enhance production capabilities and improve operational efficiency [1]. - The company is positioned as a leading private enterprise in the special embedded computer industry, with a focus on aerospace and drone-related fields [1]. Financial Summary - For 2024, the company is projected to achieve a net profit of 81 million yuan, with a PE ratio of 38x [2][4]. - Revenue is expected to grow at a rate of 22.6% in 2024, with a projected revenue of 506 million yuan [2][4]. - The gross margin is forecasted to be 46.62% in 2024, reflecting a slight increase from previous years [4]. - The company’s cash flow from operating activities is expected to improve significantly, reaching 143 million yuan in 2024 [5].