TORCH ELECTRON(603678) 中航证券·2024-11-03 15:40Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has maintained stable performance despite fluctuations in demand and operational challenges, with a gradual stabilization observed in the military electronic components sector. The demand for silicon carbide composite materials in the aviation sector is expected to increase in the second half of the year as the aviation industry progresses [1][3] - The company reported a revenue of 2.15 billion yuan for the first three quarters of 2024, a decrease of 20.7% year-on-year, and a net profit attributable to shareholders of 230 million yuan, down 22.6% year-on-year. The earnings per share (EPS) is 0.50 yuan [1][3] - The revenue for Q3 2024 was 720 million yuan, a year-on-year decrease of 36.2% and a quarter-on-quarter decrease of 6.5%. The net profit for Q3 2024 was 62 million yuan, an increase of 60.8% year-on-year but a decrease of 31.5% quarter-on-quarter [1][3] Financial Summary - The company achieved a gross margin of 32.4% for the first three quarters of 2024, an increase of 0.86 percentage points, attributed to an optimized revenue structure with a higher proportion of high-margin businesses. The gross margin for Q3 2024 was 31.5%, a decrease of 1.8 percentage points quarter-on-quarter [1][3] - The net cash flow from operating activities increased by 41.4% year-on-year, mainly due to a decrease in cash payments for procurement as the business scale declined [1][3] - The company has ongoing construction projects, including the Zihua Garden factory and various ceramic capacitor projects, with the medium-layer ceramic capacitor industrialization project expected to be operational by December 2024 [1][3] Financial Data - For 2024E, the projected revenue is 2.945 billion yuan, with a year-on-year growth rate of -15.93%. The projected net profit attributable to shareholders is 299 million yuan, with a growth rate of -5.98% [3][6] - The company’s total assets are projected to be 7.919 billion yuan in 2024E, with total liabilities of 2.251 billion yuan [7][8] - The company’s earnings per share (EPS) for 2024E is projected to be 0.65 yuan, with a price-to-earnings (P/E) ratio of 41.63 [3][8]