CATEC(SH:600879) Soochow Securities·2024-03-24 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 18.727 billion yuan in 2023, representing a year-on-year growth of 7.16%. However, the net profit attributable to shareholders was 524.85 million yuan, showing a decline of 14.35% year-on-year due to increased management, sales, and R&D expenses [2][3] - The company is advancing multiple high-tech projects, focusing on critical areas such as inertial and navigation technology, measurement and control communication, microelectronics, and electromechanical components. Significant breakthroughs have been made in key technologies, supporting future industrial development [3] - The company is steadily progressing its industrial strategic layout, expanding into new domestic and international markets, which aids in continuous innovation. The company has secured multiple bids in the unmanned systems sector, reinforcing its leading position in domestic tactical unmanned equipment [3] - The earnings forecast has been adjusted for 2024-2026, with net profit estimates of 737.42 million yuan, 923.50 million yuan, and 1.10 billion yuan respectively, corresponding to P/E ratios of 33, 36, and 32 times [3] Financial Summary - Total revenue for 2023 was 18.727 billion yuan, with a gross profit margin of 20.32%, an increase of 0.72 percentage points [2][3] - The company’s total assets are projected to grow from 46.436 billion yuan in 2023 to 58.390 billion yuan by 2026, with total liabilities increasing correspondingly [7] - The company’s cash flow from operating activities is expected to improve from a negative 1.020 billion yuan in 2023 to a positive 3.094 billion yuan in 2026 [8]