Guobo Electronics (688375) Minsheng Securities·2024-10-30 07:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its technological advantages and growth potential in new fields [1][3]. Core Views - The company reported a revenue of 1.814 billion yuan for the first three quarters of 2024, a year-over-year decrease of 35.8%, with a net profit attributable to shareholders of 306 million yuan, down 31.9% year-over-year [1]. - The decline in revenue is attributed to adjustments in industry demand, particularly affecting the T/R components and RF module businesses, but profit margins have improved [1]. - The major shareholder plans to increase their stake in the company by 400 to 700 million yuan, reflecting confidence in the company's long-term development [1]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 511 million yuan, a year-over-year decline of 43.5% [1]. - The gross margin for the first three quarters of 2024 improved by 4.1 percentage points to 36.4%, while the net margin increased by 1.0 percentage point to 16.9% [1]. - Research and development expenses as a percentage of revenue increased by 4.9 percentage points to 14.2% [1]. - The company reported a net cash flow from operating activities of 147 million yuan, a significant improvement from a negative cash flow of 248 million yuan in the same period last year [1]. Future Earnings Forecast - The company is expected to see net profits of 516 million yuan, 664 million yuan, and 838 million yuan for the years 2024, 2025, and 2026, respectively [1][4]. - The current stock price corresponds to price-to-earnings ratios of 64x, 50x, and 40x for the years 2024, 2025, and 2026 [1][4].