WMM(002149) 中航证券·2024-11-05 10:21Investment Rating - The investment rating for the company is "Buy" with an expected return exceeding 10% relative to the CSI 300 index over the next six months [22]. Core Views - The company has experienced a decline in performance in the first three quarters of 2024, with revenue of 2.22 billion yuan, down 5.55% year-on-year, and a net profit of 138 million yuan, down 8.53% [1]. - Despite the short-term pressure on performance, the company is focusing on optimizing its product structure and increasing its market share in high-value-added products, particularly in aerospace and high-end civilian materials [6]. - The company aims to enhance its competitiveness in the marine engineering sector through significant investments in production line upgrades [5]. - The company is actively pursuing the listing of its subsidiaries to improve its governance structure and expand financing channels [5]. Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 676 million yuan, a year-on-year decrease of 13.08% and a quarter-on-quarter decrease of 19.48%. The net profit for the same period was 42 million yuan, down 10.63% year-on-year and 28.30% quarter-on-quarter [1]. - The gross margin slightly decreased to 20.85%, down 1.92 percentage points year-on-year, while the net margin fell to 5.89%, down 3.85 percentage points year-on-year [1]. R&D and Operational Efficiency - The company has maintained growth in R&D investment, with R&D expenses increasing by 20.91% to 148 million yuan, reflecting a commitment to product development and market demand [4]. - The company's accounts receivable increased by 36.92% compared to the end of 2023, primarily due to the rise in contracts for high-value-added products in aerospace and marine engineering [4]. Strategic Initiatives - The company is investing 192 million yuan in a project to upgrade its production line for large-scale low-cost titanium alloys, expected to enhance its competitiveness in marine engineering [5]. - The successful listing of its subsidiary Tianli Composite on the Beijing Stock Exchange in July 2023 is seen as a step towards achieving high-quality development and improving brand effect [5]. Future Outlook - Revenue projections for 2024-2026 are estimated at 3.12 billion yuan, 3.42 billion yuan, and 3.95 billion yuan, respectively, with net profits expected to reach 185 million yuan, 198 million yuan, and 270 million yuan [9].