Investment Rating - The report maintains a "Recommend" rating for Shaanxi Huada (301517 SZ) [1][3] Core Views - Shaanxi Huada's 3Q24 revenue increased 9% QoQ, showing marginal improvement in demand [1] - The company's 1-3Q24 revenue was RMB 488 million, down 26 3% YoY, with net profit attributable to shareholders of RMB 34 million, down 44 8% YoY [1] - The company's traditional business development space and new business layout are considered in the rating [1] Financial Performance Revenue and Profit - 3Q24 revenue was RMB 159 million, down 20% YoY but up 8 5% QoQ [1] - 1-3Q24 gross margin declined 3 2ppt to 38 6%, while net margin fell 2 9ppt to 6 9% [1] - 3Q24 gross margin was 40%, down 4 6ppt YoY, with net margin at 5 2%, down 2 8ppt YoY [1] Expenses and Impairment - 1-3Q24 period expense ratio increased 2 2ppt to 28 3% [1] - Asset impairment losses increased 26 4% to RMB 3 275 million, while credit impairment losses decreased 47 6% to RMB 11 637 million [1] - Impairment provisions reduced 1-3Q24 net profit attributable to shareholders by RMB 14 913 million [1] Cash Flow and Assets - 1-3Q24 operating cash flow was -RMB 81 million, investment cash flow was -RMB 454 million, and financing cash flow was -RMB 103 million [1] - Accounts receivable and notes increased 5 6% to RMB 810 million, while prepayments rose 5 2% to RMB 5 million [1] - Inventory decreased 3 1% to RMB 371 million, and contract liabilities fell 11 6% to RMB 4 million [1] Business Overview - The company specializes in electrical connectors and interconnect products, with over 50 years of experience in RF coaxial connectors, low-frequency connectors, and RF coaxial cable assemblies [1] - It is expanding into emerging fields such as satellites and phased arrays [1] Financial Forecast - 2024-2026 net profit attributable to shareholders is forecasted at RMB 53 million, RMB 72 million, and RMB 103 million respectively [1] - 2024-2026 PE ratios are estimated at 124x, 91x, and 64x [1] - 2024-2026 revenue is projected at RMB 693 million, RMB 886 million, and RMB 1,107 million, with growth rates of -18 6%, 27 9%, and 24 9% respectively [2] Valuation Metrics - 2024-2026 EPS is forecasted at RMB 0 49, RMB 0 67, and RMB 0 95 [2] - 2024-2026 PB ratios are estimated at 4 8x, 4 6x, and 4 3x [2] - 2024-2026 EV/EBITDA ratios are projected at 59 6x, 44 17x, and 35 01x [5]
陕西华达：2024年三季报点评：3Q24营收环比增长9%；计提减值损失影响净利润