GAONA(SZ:300034) China Post Securities·2024-10-29 09:02Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has shown significant results in expanding its research and market development efforts, with a notable increase in revenue and a slight decrease in net profit for the first three quarters of 2024 [4][5] - The company is expected to benefit from the long-term growth of the domestic aerospace industry, which is a critical part of national security strategy [4] - The company is actively improving its capital structure through a private placement to raise up to 280 million yuan, aimed at enhancing liquidity and supporting business expansion [6] - The company is diversifying its business in the aerospace sector and expanding applications of high-temperature alloys into other industries, which is expected to yield significant results in the next 3-5 years [7] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 2.533 billion yuan, a year-on-year increase of 4.74%, while the net profit attributable to shareholders was 235 million yuan, a slight decrease of 0.17% [4] - The gross profit margin improved by 2.90 percentage points to 31.43% in the first three quarters of 2024, with notable increases in the margins for casting and deformation alloys [5] - The company’s inventory at the end of Q3 2024 was 2.060 billion yuan, reflecting a year-on-year increase of 22%, indicating proactive production and stocking strategies [5] - The projected net profits for 2024, 2025, and 2026 are estimated to be 354 million yuan, 494 million yuan, and 670 million yuan respectively, corresponding to price-to-earnings ratios of 39, 28, and 21 times [7]