KSW-TECH(SH:688283) Guotou Securities·2024-10-30 06:23Investment Rating - The investment rating for the company is maintained at "Buy-A" with a 6-month target price of 31.6 CNY, compared to the current stock price of 24.80 CNY [4]. Core Insights - The company's performance in Q3 2024 continues to be under pressure, with a revenue of 40.53 million CNY, representing a year-over-year decline of 49%. The net profit attributable to the parent company was 2.59 million CNY, down 92% year-over-year [2]. - Despite the revenue decline, the gross profit margin remained high at 66.53%, although it decreased by 2.40 percentage points compared to the same period in 2023. This decline is attributed to the increased revenue contribution from new products such as signal sources [2]. - The company's contract liabilities reached 10.09 million CNY, a significant increase of 678% year-over-year, indicating a positive signal of demand recovery in the downstream market [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 121 million CNY, down 27.23% year-over-year, and a net profit of 16.59 million CNY, down 68.91% year-over-year. The net profit after deducting non-recurring items was 9.78 million CNY, down 79.71% year-over-year [1]. - The R&D expenses for the first three quarters of 2024 were 50.88 million CNY, an increase of 20.93% year-over-year, with an R&D expense ratio of 41.94%, up 16.71 percentage points from the same period in 2023 [2]. Market Outlook - The advancement of 5G-A commercialization and the pre-research of 6G technology are expected to reveal new applications, particularly in low-orbit satellites and integrated sensing [4]. - The company is experiencing growth in the satellite field, with its wireless channel simulation products being increasingly applied in the satellite communication sector [4]. Valuation Metrics - The company is projected to generate revenues of 244 million CNY, 356 million CNY, and 479 million CNY for the years 2024, 2025, and 2026, respectively. The net profits for the same years are expected to be 61 million CNY, 96 million CNY, and 132 million CNY [9].