Baimtec Material (SH:688563) Minsheng Securities·2024-10-30 22:09Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its position in the aerospace materials sector and projected growth potential [1][3]. Core Views - The company reported a revenue of 2.196 billion yuan for the first three quarters of 2024, reflecting a year-over-year increase of 0.1%. However, the net profit attributable to shareholders decreased by 13.3% to 436 million yuan, primarily due to a decline in gross margin and increased R&D expenses [1]. - The company is experiencing pressure on its performance due to adjustments in industry demand, with a significant drop in revenue and net profit in the third quarter of 2024 compared to the previous year [1]. - The company is increasing its R&D investment, which has led to a higher expense ratio and negative operating cash flow, indicating challenges in cash collection and increased operational costs [1]. - The company is progressing steadily with its fundraising projects, which are expected to support long-term development and meet future demand in the aerospace materials sector [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 2.196 billion yuan, with a net profit of 436 million yuan, and a non-recurring net profit of 382 million yuan, showing a decline of 24.1% year-over-year [1]. - The gross margin for the first three quarters of 2024 decreased by 3.9 percentage points to 30.6%, while the net profit margin fell by 3.1 percentage points to 19.9% [1]. R&D and Operational Challenges - The company has increased its R&D expense ratio to 7.9%, reflecting a commitment to innovation despite the financial pressures [1]. - As of the end of the third quarter of 2024, accounts receivable increased by 16.4% to 2.417 billion yuan, indicating challenges in cash flow management [1]. Growth Projections - The company is projected to achieve net profits of 665 million yuan, 839 million yuan, and 1.036 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 39x, 31x, and 25x [2][4]. - The company has shown a compound annual growth rate (CAGR) of 24.5% in revenue and 26.7% in net profit from 2020 to 2023, indicating strong historical growth despite current challenges [1].