KING-STRONG(SZ:300629) Huajin Securities·2024-12-16 08:27Investment Rating - The investment rating for the company is upgraded to "Buy" [2][4]. Core Views - The company is focusing on the military data chain and expanding into the low-altitude economy, which is expected to drive growth [2][4]. - The company reported stable performance in Q3 2024, with a slight decrease in revenue but an increase in net profit, indicating effective cost control [2][4]. - The company is well-positioned in the RF microwave field, providing advanced solutions for military communication data chains [2][4]. Financial Performance - In Q3 2024, the company achieved revenue of 128.9 million yuan, a decrease of 0.31% year-on-year, while net profit attributable to shareholders increased by 2.13% to 34.09 million yuan [2]. - For the first three quarters of 2024, the company reported revenue of 403.8 million yuan, up 5.26% year-on-year, and net profit of 112.7 million yuan, an increase of 0.66% [2][4]. - The gross margin for Q3 2024 was 71.63%, an increase of 7.36 percentage points year-on-year [2]. Future Projections - The company is expected to achieve revenues of 588 million yuan, 776 million yuan, and 1.055 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 15.0%, 32.0%, and 36.0% [4][7]. - Net profit projections for the same period are 164 million yuan, 239 million yuan, and 327 million yuan, with growth rates of 17.8%, 45.8%, and 36.8% respectively [4][7]. Market Position - The company is recognized as a leading enterprise in the RF microwave sector, focusing on special applications in military communication [2][4]. - The low-altitude economy is projected to reach a market size of 503 billion yuan by 2024, with significant growth potential for the company in this area [2][4].