ELECSPN(002935) Guoyuan Securities·2024-10-31 06:37Investment Rating - The report assigns a "Buy" rating for Tianao Electronics, indicating a positive outlook for the company's stock performance in the near future [7][8]. Core Views - The report highlights that Tianao Electronics is facing short-term profit pressure due to various factors, including a decline in revenue and net profit. However, the long-term development in the time-frequency field remains promising [3][4][5]. - The company is expected to benefit from the expanding demand for airborne and satellite products, with projected net profits for 2024-2026 being 91 million, 118 million, and 140 million yuan respectively [7][9]. Summary by Sections Financial Performance - In Q3 2024, Tianao Electronics reported revenue of 579.1 million yuan, a year-on-year decrease of 10.2%. The net profit attributable to shareholders was 15.94 million yuan, down 32.02% year-on-year [3][4]. - The gross profit margin for the company was 26.49%, while the net profit margin stood at 2.76% [4]. Research and Development - The company has maintained its R&D investment at approximately 30.03 million yuan for the first three quarters of 2024, accounting for 5.20% of its revenue. This investment focuses on crystal devices, atomic clocks, and Beidou watches [5]. Stock Buyback - Tianao Electronics completed the buyback and cancellation of 2,283,278 shares of restricted stock due to unmet performance targets, which is expected to enhance the competitiveness of its stock price [6]. Future Outlook - The company is projected to achieve net profits of 90.90 million yuan in 2024, with an EPS of 0.21 yuan, and a PE ratio of 79 times [7][9].