CATEC(600879) Soochow Securities·2024-10-31 10:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is actively positioning itself in the commercial aerospace sector and is expected to benefit significantly from the rapid development of China's aerospace industry [3] - The company's performance in Q3 2024 was notably strong due to investment income from the transfer of electrical engineering equity, despite a decrease in revenue from aerospace products [2][3] - The financial structure of the company remains robust, with a slight decrease in total assets and liabilities, while equity has increased [2] Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 9.234 billion yuan, a year-on-year decrease of 28.74%, and a net profit attributable to shareholders of 562 million yuan, an increase of 9.39% year-on-year [1][2] - The third quarter saw revenue of 1.522 billion yuan, down 54.14% year-on-year, but net profit surged by 150.89% to 312 million yuan, with a gross margin increase of 55.06 percentage points to 39.78% [1][2] - The company's total assets as of Q3 2024 were 45.534 billion yuan, a decrease of 2.59% year-on-year, while total liabilities were 21.453 billion yuan, down 6.46% year-on-year [2] Earnings Forecast and Valuation - The company’s projected net profits for 2024, 2025, and 2026 are 766 million yuan, 882 million yuan, and 1.027 billion yuan respectively, with corresponding P/E ratios of 39, 34, and 29 [3]