CEC CoreCast(600764) 广发证券·2024-11-15 09:12Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 32.80 CNY per share based on a PE valuation of 47 times for 2025 [3][13]. Core Views - The company is positioned as a leader in underwater acoustic electronic defense equipment, benefiting from the modernization and informatization of naval equipment, as well as the long-term strategic development of underwater defense systems [5][6]. - The recovery of downstream demand has led to a significant improvement in the company's performance in Q3 2024, with notable increases in net profit and operating income compared to the previous year [1][6]. - The company is expected to see revenue growth driven by both underwater electronic defense products and non-acoustic business applications, with projected revenues of 40.45 billion CNY, 45.69 billion CNY, and 52.86 billion CNY for 2024, 2025, and 2026 respectively [6][21]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported operating income of 1.872 billion CNY, a decrease of 3.49% year-on-year, while net profit attributable to shareholders increased by 21.50% to 149 million CNY [1]. - The gross margin improved by 2.50 percentage points to 35.55%, and the expense ratio decreased by 0.45 percentage points to 26.88% [1][6]. Revenue Projections - The company anticipates revenue growth rates of 12.6%, 12.9%, and 15.7% for the years 2024, 2025, and 2026 respectively, with net profits expected to grow by 11.1%, 44.7%, and 41.7% in the same period [2][6]. Business Segments - Underwater electronic defense products are projected to see revenue growth of 18.53%, 15.93%, and 19.72% from 2024 to 2026, with corresponding gross margins of 30.0%, 32.0%, and 34.0% [6][12]. - Special electronic products are expected to grow by 15.16%, 18.66%, and 20.11% over the same period, maintaining a gross margin around 40% [7][12]. - The electronic information segment is projected to grow at a slower rate of 5.0% annually, with stable gross margins of 20% [7][12]. Valuation - The report suggests a reasonable value of 32.80 CNY per share based on a comparison with similar companies and historical valuation levels, reflecting the company's strong position in the defense equipment sector [13][14].