ZHENHUA(000733) 民生证券·2024-10-28 06:01Investment Rating - The report maintains a "Recommend" rating for Zhenhua Technology (000733 SZ) [1][3] Core Views - Zhenhua Technology is a leading domestic special electronic components company with a strong industry position [1] - The company has been investing in fixed asset projects to drive intelligent and digital transformation, improving production efficiency and reducing costs [1] - Despite short-term challenges, the company is expected to emerge from the demand bottom [1] Financial Performance Revenue and Profit - 2024 Q1-Q3 revenue was 3 74 billion yuan, down 38 0% YoY [1] - 2024 Q1-Q3 net profit attributable to parent company was 645 million yuan, down 68 7% YoY [1] - 2024 Q3 revenue was 1 31 billion yuan, down 23 7% YoY [1] - 2024 Q3 net profit attributable to parent company was 224 million yuan, down 57 5% YoY [1] Profit Margins - 2024 Q1-Q3 gross margin declined 11 2ppt to 49 6% [1] - 2024 Q1-Q3 net margin declined 16 9ppt to 17 2% [1] Cash Flow - 2024 Q1-Q3 operating cash flow increased 215% YoY to 1 335 billion yuan [1] - 2024 Q1-Q3 investment cash flow was -318 million yuan [1] - 2024 Q1-Q3 financing cash flow was -948 million yuan [1] Forecasts Revenue and Profit - 2024E revenue is forecasted at 4 924 billion yuan, down 36 8% YoY [2] - 2024E net profit attributable to parent company is forecasted at 1 024 billion yuan, down 61 8% YoY [2] - 2025E revenue is forecasted at 5 873 billion yuan, up 19 3% YoY [2] - 2025E net profit attributable to parent company is forecasted at 1 455 billion yuan, up 42 1% YoY [2] Valuation - 2024E PE is 27x [1][2] - 2025E PE is 19x [1][2] - 2026E PE is 15x [1][2] Key Developments - Controlling shareholder plans to increase holdings by 100-200 million yuan, demonstrating confidence in the company's future [1] - R&D expense ratio increased to 7 1% in 2024 Q1-Q3 [1] - Accounts receivable and notes increased 2 5% QoQ to 6 544 billion yuan at end of 2024 Q3 [1]