NNCC(SH:600435) Shanxi Securities·2024-10-29 07:14Investment Rating - The report maintains a "Buy-A" rating for the company [1][2]. Core Views - The company has faced significant revenue declines in the first three quarters of 2024, with a reported revenue of 796 million yuan, down 66.80% year-on-year, and a net loss of 74 million yuan, a decrease of 139.88% year-on-year. However, the report anticipates a recovery in performance as subsequent orders materialize [2][3]. - Research and development expenses have increased by 7.10% year-on-year to 165 million yuan, indicating a commitment to advancing key equipment development. The company is positioned to benefit from the growing demand for precision-guided munitions, particularly in the context of military applications [3][4]. Financial Summary - For the fiscal years 2024 to 2026, the company is projected to achieve earnings per share (EPS) of 0.15, 0.18, and 0.21 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 80.2, 66.1, and 55.1 [1][4]. - The company's revenue is expected to recover from 3985 million yuan in 2024 to 5545 million yuan by 2026, reflecting a compound annual growth rate (CAGR) of 17.7% [4][5]. - The net profit is projected to grow from 218 million yuan in 2024 to 318 million yuan in 2026, with a net profit margin increasing from 5.5% to 5.7% over the same period [4][5].