ZHENHUA(000733) 国盛证券·2024-10-28 00:10Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company, a leading domestic military electronic components enterprise, experienced a decline in performance in the first three quarters of 2024 due to insufficient downstream demand and price reductions. However, it is expected to benefit from a recovery in downstream demand and continuous product expansion in the future [2] - The controlling shareholder plans to increase holdings, indicating confidence in the company's future development. The planned increase amounts to 100 to 200 million yuan, with a purchase price not exceeding 59.60 yuan per share [2] - The company is actively developing new products, including high-value-added components, which will contribute to its growth as the market recovers [2] Financial Summary - For the first three quarters of 2024, the company reported a revenue of 3.74 billion yuan, a year-on-year decrease of 37.97%, and a net profit attributable to shareholders of 645 million yuan, down 68.69% year-on-year [1] - The gross margin for the first three quarters of 2024 was 49.59%, a decrease of 11.20 percentage points year-on-year, while the net profit margin was 17.25%, down 16.90 percentage points year-on-year [1] - The company’s cash flow from operating activities for the first three quarters of 2024 was 1.335 billion yuan, an increase of 215.14% year-on-year, primarily due to a reduction in cash paid for goods and services [1] Financial Projections - The projected net profit for 2024 is 1.013 billion yuan, with expected growth rates of -62.2% in 2024, 41.6% in 2025, and 25.2% in 2026 [3] - The estimated earnings per share (EPS) for 2024 is 1.83 yuan, with projections of 2.59 yuan for 2025 and 3.24 yuan for 2026 [3] - The price-to-earnings (P/E) ratios are projected to be 27X for 2024, 19X for 2025, and 15X for 2026 [2][3]